As to the receiver question, I'd say get one with it, unless the cost difference is a big issue. I hate (but am capable of) the TV/Receiver input matching game. I know to play with the receiver until I get sound, then play with the TV until I get a picture. Most people won't figure this out, and you have to explain how to set up various activities. A Harmony remote can help here, but it's not very elegant. Having a receiver capable of converting everything to the one hi-def output would be great from a convenience standpoint, but not from a quality standpoint.

Matthew