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Kal: I was wondering. I recently saw a new Blu-Ray player (the new Sony BDP-S550) that now incorporated TrueHD audio output, which could go out via HDMI v1.3 digital, OR separate analogue channels. Would this mean that one could get the player and have HD audio without having to get a new surround preamp processor? Is that the idea you think, or am I missing something?

The idea is that one can get HD audio without HDMI but one still needs something that can control multiple analog channels. The situation is analogous to the analog outputs of multichannel SACD players.

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Is it generally better to have the player do the processing and send it out via analogue, or better to get it out digital and have the pre/amp/processor do it? I know there are a lot of variable to be had here, but maybe you lean one way or the other in general?

In general, it is better to use the HDMI and a competent pre/pro since the bass management, DSP, control and, perhaps, roomEQ are decided advantages. IMHO, using mch analog outs is a useful and effective stopgap.

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At some point I plan on getting a True HD capable amp/processor, but it'd be great to be able to do it a step at a time and get the Blu-Ray player first. I have a HD-DVD player and already the sound is far superior to standard DVD, but for all the obvious reasons it's time to get a Blu-Ray player this Fall or Christmas if I want to buy any new movies.

If you have an effective way to control the multichannel analog outs, it will work fine.

Kal