Hello again Perc.

 Originally Posted By: Perc
I just grabbed a used PS3 but realize it won't decode the HD Audio codecs.
The PS3 will output the HD audio track or PCM track via MPCM over HDMI.

 Originally Posted By: Perc
My question is if I grab a Toshiba HDA20 or A35, do I still need an AV receiver that has HDMI 1.3?

Or, since the HD DVD player is supposed to decode those signals, will a plain old toslink optical cable from DVD to an older receiver, like the Denon 3805 (I'm hoping to grab a used one locally at what I think is a great price) successfully transmit the lossless sound?
There is so much information to sift through (not to mention all the vague marketing drivel). With regards to the HD DVD player, I think the answer to your question is no you don't require a receiver that is 1.3 so long as your receiver can accept MPCM via HDMI. The player will decode the audio and send it to your receiver as PCM.