Home theatre in the box sets are usually lower grade stuff that companies mass produce and bundle together but for the average consumer, I find they are perfectly fine.
The HDMI port is for plugging devices into the reciever and then out to the TV. If you only have one DVD/Blu-Ray player for example, that's perfectly fine but if you want to hook up another thing via HDMI like a game console, etc. you might have to go with another method.
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