Yes it works great, I noticed zero loss of quality outputting everything via component video to my TV. I use DVD, HD Cable, camcorder, and rarely VHS through the receiver. There was an issue with some early units that caused the upconversion to fail after a while, the "fixed" units can be distinguished by the clear plastic covers applied to the rear of the system around the speaker connections. (This was done as another common problem was stray speaker wires shorting out on the receiver chasis) I have done macros with my universal remote I dont know about macros on the receiver itself??

I would also recomend the panasonic digital receivers, they sound fantastic. Panasonic lacks some of the features like upconversion and uses spring connectors for some of the surround speakers but the sound quality is top notch. The advantage is if you are on a budget the low prices

http://www.amazon.com/exec/obidos/tg...tchen&n=507846

Another speaker suggestion (my choice) a little above your budget is the BIC America Acoustech system available through costco or directly frim BIC America, I payed $699 + $100 shipping direct. The system includes two towers a matched center, two surrounds, and a 12" subwoofer. They sound great, and are a very nice value. Here is a link to a nice review:

http://www.audaud.com/audaud/MAR04/component/comp1.html

If you shop carefully, and catch a deal or two you could probably get some NHT, Celestions, Boston Acoustic's and perhaps Paradigms in that "range".

However, I would take some time and listen to the others as well. It is always good from time to time to really listen to some high end stuff. Then see what can fit in your price range. Why? Obviously you cannot get everything the expensive speakers have in a lesser speaker, but there may be specific traits in the more expensive ones that you could look for in the speakers in your budget.

Thanks for the comments. I might try to listen to one. When I bought my non-ES sony a couple of years ago, I knew it didn't sound all that great. But I wanted to get something up and running and my front speakers were not matching anyway. But even when I got matching fronts, it still pretty much sucked! Enter the H/K which I love. It will be hard for me to seriously consider anything other then a H/K for my media room, but I'll try to keep an open mind.

You did catch my eye with your "tube" sound comment. I still have and will be setting up my dedicated audio system that includeds a 150 watt hybrid amp. So when you say tube sounding I know what you mean and that is saying a lot.

I grew up listening to my fathers H/K Tube based system, he had built it as a teen into a custom cabinet with turntable and reel to reel. I nearly cried when he told me he had sold it while I was in college. I understood because it was freaking huge cabinet and they had no where to keep it in the new house. Anyways I suggest giving the Sony ES digital line a listen it suprised me. I previously had a STR-9XX something receiver that just sounded like junk and I was glad when it passed on into a fatal "Protect" mode.