Should I upgrade home theatre to one with HDMI?

Not to pile on, but my Rotel 1056 receiver has me in the same boat, no HDMI inputs/outputs.

I've done what others have suggested and used it for some time now.

TV-Directv box hdmi to tv, tv volume set to zero. Digital audio out of Directv box to receiver.

DVD-Oppo 95 hdmi to tv, 5.1 analog direct to receiver which lets the Oppo deal with the new codecs and the receiver sends the signal unmolested to the amp section.

CD-Oppo 95 2-channel analog out to cd analog input on the receiver. Lets the nice DACs in the Oppo handle the signal.

Hope that helps.

Just wanted to emphasize a point of clarification for anyone not completely up to speed on this format and connection stuff.. ....
Any of the TV, Cable, Fios or Sat boxes will not use the high resolution uncompressed audio that you hear about. (They cleverly make little mention of these specs in the cable marketing and high res audio won't be happening anytime soon) So, the hdmi cable input avail is just an issue of wiring convenience for audio (and a flim flam excuse to sell you new gear) .... The old fashion fiber or coax cable is all you need for Dolby digital 5.1 TV as many of the posters recommend.

Now.... the high res audio formats on Blue Ray discs are fantastic sounding and a good reason to spin discs and hook up the gear with hdmi or 7 channels of analog cables (pick your favorite Dac/pre amp and room management technique configuration)

Admnranger have you chosen the DACS of the Oppo over the Room management and DACS of your Rotel by ear?

"Admnranger have you chosen the DACS of the Oppo over the Room management and DACS of your Rotel by ear?"

No I have not. My Rotel doesn't handle the new codecs on the blu-rays so I let the Oppo do the heavy lifting.

For cd's, I let the Sabre chipset in the Oppo again do all the work. I can't image that the 2005? era DACs in the Rotel receiver are going to trump the ones in the BDP-95 Oppo, but I could be wrong. Are you suggesting that they are better or will sound better with my setup, Tcatman?

I let the Rotel handle the processing for the ipod output coming out of my Wadia i170 and the DirecTV HD DVR. Otherwise, the Oppo does the DAC work for me.

Admranger you wrote...
I can't image that the 2005? era DACs in the Rotel receiver are going to trump the ones in the BDP-95 Oppo, but I could be wrong. Are you suggesting that they are better or will sound better with my setup, Tcatman?

Actually,

I was looking for your opinion on the tradeoff between room management through dsp with your Rotel.... VERSUS the "potentially" better sounding DACs of your OPPO.

Another way of framing the question... what's most significant as you evaluate your upgrade path..?

Room management, Base management, better DACS, No jitter, High Resolution Formats AND what is the rank order for two channel versus 5/7 channel music content..

Everyone has their bias...

Tcatman: Sorry, I may still not understand, but I'll give it a shot.

I don't like what the Rotel does taking 2-channel input and running it through it's DSP for 5.1 sound. If I didn't have small front speakers, I'd run 2 channel bypass but I have to add in the .1 as my speakers roll off once you are in the 60-ish hertz range.

My room is definitely not optimized nor will it be barring personal tragedy or divorce (for me it is one in the same). The Rotel room management doesn't exist. I don't have any automatic room management/sound correcting software working (maybe I'm misunderstanding what you are getting at).

Bass management is done by ear. I've now had my subs in 3 different spots in the past month. I think I'm getting close to liking where they are.

I don't have any SACDs. So high resolution formats are HDCDs and blu-ray concert dvds. I don't even like some of the DTS audio cds I have (Henley's "End of the Innocence" for instance). They are muddy and meh to me. I prefer the regular CD hands down in this particular instance. Adele at Royal Albert Hall blu-ray, in stark contrast, is stunning in DTS 5.1.