Midrange-to-upper-midrange priced brands that I recommend are: Denon, Marantz. Parasound, Pioneer Elite, and Yamaha (Whichever brand you choose I highly recommend a receiver that is equipped with HDMI 1.3 compliant connections)*
Follow-up...
Be wary or skeptical when anyone advocates for or against HDMI while promoting the high definition formats of DTV, HD-DVD, or Blu-ray.
In the United States there are currently two consumer broadcast video formats – DTV (ATSC) and NTSC, the latter is designated to become obsolete on February 18, 2009.
The NTSC standards have long defined the analog consumer video format. The ATSC, in conjunction with the EIA, IEEE, NAB, NCTA, AES, and SMPTE, have established the next generation compressed digital video broadcast format – DTV – for the domestic North American consumer market. (Likewise, in parallel with the ATSC our European counterparts have also developed their own high definition compressed digital video standard - DVB.)
Add to the consumer DTV broadcast standards the two competing high definition optical storage formats – HD-DVD and Blu-ray – to round out the three major “HDTV” formats that consumers are dealing with in North America.
Component NTSC, SDTV, or EDTV cannot even remotely be labeled as “HDTV” (though it appears many are doing precisely that!) The early European HD-MAC analog HDTV standard was abandoned in 1993. The Japanese 1125-line MUSE broadcast system is the only operating analog high definition broadcast format, which is expected to be discontinued very soon. Thus, for various reasons, none of these systems could legitimately be cited as an example of a common component “HDTV” interface format.
For the consumer market a compressed component digital video interface does not exist, thus there is no widespread, standardized (digital) component (H)DTV specification for any consumer applications. Currently the only component digital video interfaces, (intended exclusively for professional or broadcast use,) are SDI, HD-SDI, Dual Link SD and Component 4:4:4:4 Single Link; most supporting uncompressed digital video streams unavailable to most consumers. The latter digital component mechanical interfaces use either IEC 60169-8 75Ω BNC connectors or 110Ω cable equipped with 93-contact connectors.
For consumers to experience full, unadulterated high definition video, you must use HDMI (though DVI is specified as HDCP compatible,) to pass either the HDCP or AACS encrypted signals. Once the content protection is terminated at any point prior to reaching the display the signal will either be terminated or lowered to a (lower resolution,) lower quality signal. At that point it is very likely that the internal video processing will upscale the video stream if equipment is set to upscale often with the consumer unaware the video has gone through unnecessary extra conversions. The best way to mitigate or minimize this problem is to plus the HDMI (or DVI) out from the source directly to the HDMI (or DVI) input on the display device, which hardly provides the convenience most consumers desire.
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“On January 26, 2007 the BBC reported "The AACS group has admitted that a hacker [muslix64] had managed to decrypt some discs and other people were now able to make copies of certain titles." In a recent interview muslix64 said the reason he hacked the AACS was he got angry when a HD-DVD he bought wouldn't play on his monitor because it didn't have the compliant connector. He says "Not being able to play a movie that I have paid for, because some executive in Hollywood decided I cannot, made me mad." Muslix64 also said "I'm just an upset customer. My efforts can be called 'fair use enforcement'."”
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HDMI + HDCP + DVI
"So you have a television that has a digital tuner and is listed as being 1080i compatible. Congratulations! Are you watching HDTV? The answer is "maybe". As it turns out, the companies that make television programs and movies do not trust you and me. In fact, they think that given the chance you will steal from them and that they must protect themselves in any way they can. To this end the High-bandwidth Digital Content Protection (HDCP) specification from Intel is a DRM scheme used to ensure that content traveling between HD devices is secure from copying. To connect these HD device you must use digital interconnect cables. Currently there are only two interconnects that can be used: Digital Visual Interface (DVI) or high-definition Multimedia Interface (HDMI). DVI is primarily used to connect digital monitors to computers and HDMI is the standard used for home theater equipment."
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Q. What is HDCP?
High-bandwidth Digital Content Protection (HDCP) is a technology developed by Digital Content Protection, LLC (a subsidiary of Intel) to protect digital entertainment content. HDCP has been implemented across both DVI and HDMI interfaces. The HDCP specification provides a cost-effective and transparent method for transmitting and receiving the highest quality digital entertainment content to DVI/HDMI-compliant digital displays.
The HDMI standard does not require HDCP. However, it is required by industry groups and governmental regulation (details below).
Q. If my digital monitor doesn’t have an HDCP-compatible connection (such as an HDMI connection with HDCP), will I be able to view HD DVD and Blu-ray content in high definition?
Content owners (i.e., a movie studio releasing a DVD) decide which technologies they will use to protect their content against unauthorized copying. Movie studios, which fear that high-definition versions of their movies will be pirated, are expected to use HDCP when releasing high-definition versions of their movies, though some may choose to release some titles without HDCP. To be safe, consumers who want to be able to play high-definition content should ensure that their HDTVs and other HD devices are able to decode HDCP-encrypted content.
There are also specific requirements on HDCP usage mandated by the U.S. Federal Communications Commission and by industry bodies in Europe and Asia. See below for more information.
With certain exceptions, nearly all HDMI devices on the market include HDCP support. DVI devices, in particular earlier versions of DVI, are more likely to lack HDCP support.
Q. I’ve read that the Hollywood studios are using Advanced Access Content System (AACS) to protect their high-definition content. Is AACS an alternative to HDCP?
No, the two are complementary. AACS is the content protection for the video on the DVDs and HDCP is the content protection on the HDMI link between the DVD player and the TV. AACS is a stronger replacement for the current content protection on today's standard-definition DVDs (which has been broken). The DVD player will decrypt the AACS-encrypted content coming off the HD-DVD or Blu-ray disc and then send the content over the protected HDMI link (using HDCP) to the HDTV.
Q. What has the Federal Communications Commission (FCC) mandated for HDMI usage in HDTVs?
In the United States, the FCC has mandated that beginning July 1, 2005, all HDTVs 36 inches and larger labeled “Digital Cable Ready” must include either a DVI/HDCP or HDMI/HDCP interface. In addition, either a DVI/HDCP or HDMI/HDCP interface is required for:
Models with screen sizes 25 to 35 inches: 50% of a manufacturer's or importer's models manufactured or imported after July 1, 2005; 100% of such models manufactured or imported after July 1, 2006.
Models with screen sizes 13 to 24 inches: 100% of a manufacturer's or importer's models manufactured or imported after July 1, 2007. [Source: Code of Federal Regulations, Section 15.123]
Q. What has the Federal Communications Commission (FCC) mandated for HDMI usage in cable set-top boxes?
As of July 1, 2005, all cable operators must “include both a DVI or HDMI interface and an IEEE 1394 interface on all high definition set-top boxes acquired by a cable operator for distribution to customers.”
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Having presented a strong case in favor of using HDMI whenever possible in order to view high definition content at its optimum I would like to add that at this point in time it is very likely – and very unfortunate - that many, if not all, of the consumer electronics manufacturers are failing to implement a true ‘end-to-end’ HDMI compliant signal path to maintain the required AACS or HDCP encrypted signal. I currently know of no individual or company that is specifically testing for this shortcoming.