Upgrade for TrueHD and 5.1= Better sound or worse?


Hi, I am a newbie that is just putting together my first system.

I have a pair of Usher BE 718's, a Squeezebox Duet, a Tube Audio Design Dac and Preamp and Tube Audio Design (actually solid state) monoblocks.

I will likely purchase Anticables, Lessloss power cords and GIK Room panels.

I am also in the process of buying a Blu ray player. I have an old Harman Kardon AVR 230 from 2004 (no HDMI).

First of all, how would True HD sound on a 2 channel system with the Blu ray player doing the processing? Would it still be a "HUGE" improvement?

I am thinking about the following upgrades:

Onkyo receiver that processes TrueHD through HDMI (about $300 either used or refurbished)

I added the cost of 6 pairs of interconnects-- even through Blue Jeans, at least $190. May as well just spend the extra $100 and get it through HDMI.

That is unless i can just use 2 channel analog outs to my pre and get 90% of the improvement (don't neccessarily really need the surround sound, but also thinking about it.

Purchase rock bottom cheap surround speakers, center and sub. Thinking like about $100 per speaker used, or about $400 and all Blue Jeans speaker cables.

Will use only for home theater/Blu rays. Will this be a huge degradation in sound quality, or will the surround sound and Onkyo receiver be a huge upgrade?

If i use 2 channel, all music goes through the DAC. Would this be better sound using the 2 channel analog outs, or better to use an Onkyo receiver with monoblocks connected to the pre-outs.

Also will buying $100 speakers for surrounds, center and sub a waste of money?

Cost of upgrade:

Onkyo receiver $300
4 speakers $500 ($400-$425 plus shipping)
3 sets of speaker cable, 1 subwoofer cable $110

total cost: $910
minus cost of 2 pr interconnects $60(Blue Jeans) or $200 (anticables)

$850

Thanks for your help.
indiesound
On the 4.1 question, you would use Phantom center mode or something like that. And for movies, quality of surrounds not critical at all. Mostly effects, foot steps, bullets richoceting, crowd noises, etc.
Also will buying $100 speakers for surrounds, center and sub a waste of money?

Frankly yes. It kind of defeats the effort to get trueHD surround sound, which won't be all that different from regular Dolby Digital or DTS. I think you will be disappointed with it. FWIW I'd stick with your AVR230 and just feed it digital out of the BD player and get matching used 718's and a sub to make a 4.1 system. Alternatively keep saving and then upgrade your mains and move the 718's to surround role. Use Phantom for center channel and keep the speakers slightly closer together than you might do normally - and you'll be fine for one or two listeners in the sweetspot. (IMHO skimping on speakers in a surround system will leave you dissappointed and you'll want to upgrade again only too soon).
Ok, just realized that i only need 3 pairs of interconnects, not 6 pair. And that a center channel is really not necessary for 1 or 2 listeners.

So which is true? Swampwalker says that surrounds are for non critical sounds. Whereas Shadore recommends i spend almost $2000 on surrounds??????

So $100 is probably too low. And i meant used, on a really good deal. I could get decent used sub for less than $300-$600, (if i get a REL, could use as double duty in 2 channel.) and about $300 for a pair of surrounds.

Seems like i could probably get by without the HDMI receiver upgrade.

Anyone else heard blu ray True HD with only 2 speakers through analog outs by the way? Thanks!!
You sound understandably anxious to put together a system. Lets say you've spent your budget and the results are only slightly better than two channel. Can you imagine what that disappointment might be like?

I'm leaning towards Shadorn's suggestion. Have patients and wait for this latest iteration of HDMI and room correction receivers to show up on the used market. This would open up your player selection as well as saving on interconnects.

I have a small HT space and the upgrade from 5.1 to 7.1 was substantial. The size of the room shouldn't dictate 2.1, 5.1, or 7.1, it's the size of the speakers in relation to the room. 7.1 is not overkill it's what surround is supposed to do. Those unusual "surround" speakers used in typical 5.1 setups will blur the 7.1 setup. I have no experience with dissimilar speakers but after watching and listening to my receivers room correction work I would suggest you rethink your upgrade path.

Also, while these new receivers do a wonderful job of matrixing even monaural into 5 and 7.1 there still isn't much in the way of up to date media out yet. You have plenty of time.
indie,

I am with Swampwalker. if you are not going to have a dedicated HT 5.1 system to create the uber immersion experience, then decent speakers will suffice for the surrounds. I suggest, if/when you have a source and AVR that can provide 5.1 from DVD or blueray, use the 2 speakers you have now to hear firsthand the type of sounds sent to the surround channels. you program the AVR for 5.1 even though you don't have all the speakers cable your speakers to the SR/SL channels, and play the DVD. Then listen: go to action scene(if there is one) and normal vocal scene. This way you hear the sounds and then you should be able to determine how much you want to spend on the surround speakers. I went with used very small satellites that are completely different brand and design and they work well for surrounds. They cost 5% of the front 3 speakers cost. I listened to large bookshelves as well and decided not to use them.

On the TrueHD, there is just more sound information than regular DD audio due to the higher bit/sampling rates. So it's like comparing SACD to CD. Regardless of the number of speakers, you will be receiving higher quality sound. No way it will sound worse. And with your speakers you should hear the difference compared to Dolby Digital.