I think I might have missed it being mentioned in the thread. Which reciever did you end up pulling the trigger on, Mayer?
EDIT: If you went with the Onkyo TXSR506, then I led you astray with my most recent recommendation. That is a good reciever, but maybe doesn't do
everything you thought it might. I apologize for the bad advice (I had OilKiller's reciever on my mind).
That particular reciever only supports HDMI audio pass-thru (see the second post in
this thread). With the TXSR506, all audio inputted via HDMI can only be outputted via HDMI. In your case, that means you'd be stuck with your TV's speakers for sound -- unless you add a separate audio cable connection from the HDMI components you want to hear out of your
actual speakers. (Rathji was 100% right after all. Good call, man!)
The good thing is that the reciever has 2 optical and 2 coaxial inputs for audio - use these before using RCA inputs, if possible. Don't go out and buy the most expensive digital cables... keep them as short as needed, and don't feel worried about getting the cheap cables when it comes to optical (ie. toslink) or coaxial. With ~3 ft runs it won't matter one bit.
Also, make sure you configure the audio sources to be set-up with the corresponding video source being inputted. Onkyo's manual is usually quite clear, but if you have any questions, ask.