Video Asylum

OK. Here goes.

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1. You are right. L/R analog and S/PDIF are no problem for any AVR or modern prepro.
2. HDMI is the de facto standard now for video and audio and the top version, as of today, is v1.4 but that is only of import for 3D. No 3D and v1.2/3 are just fine.
3. BluRay uses dts Master Audio or Dolby TrueHD for high resolution audio. Prior versions (e.g., DD) used lossy compression while the new ones are lossless.
4. You cannot get HD audio via S/PDIF or TOSlink and, imho, HD audio is as, if not more, important as HD video. For that, you need HDMI. You can get HD audio from multiple analog outs from the player but that is ignoring the inevitable.
5. Since you are really starting from scratch, you should consider a decent modern AVR that will provide all you require including amps.
6. If you are more persnickety, as I am, a standalone preamp/processor and an external amp will do better but at a higher price.

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