The living room AV system in all its latest gory...

The audio side of the system is shown here.
And no, that still isn't a typo in the heading... [last updated: 28 July 2010]

AV system diagram

Blue arrows show hdmi (digital video and digital audio) signals. The multi-channel Audiolab 8000AP pre-amplifier (in addition to five stereo analogue inputs, plus a "5.1" set, and seven digital audio inputs) has two hdmi inputs,1 from which it strips incoming high-resolution digital audio for processing,2 while passing along the digital video — unprocessed — direct to its single hdmi output.

The (hacked/dongled) multi-region, multi-zone Oppo Blu-ray player incorporates a later variant of the VRS upscaling technology I had in my original (primarily analogue) video scaler. This squeezes maximum video quality out of standard definition DVDs by skilful upscaling to 1080p. (Even 1080p/24 if the DVD has been correctly mastered.) The Freeview and Freesat PVRs, although capable of doing their own upscaling, are both upscaled by identical technology in the DVDO Edge scaler. I almost never watch Freeview TV, however, as its quality (if that's the right word) is dreadful when compared with the higher bit rate3 transmissions via Freesat.

My chum Henry (the DVDO Edge supplier) has forthright opinions around the question of Edge versus Oppo Blu-ray for handling DVDs:

Edge v Oppo

Naturally, the DVDO technical wizard from the Edge camp has a (slightly) divergent view. But he agrees with the basic principle: minimise video processing in too many components but do it right. With the DVDO Edge I regain aspect ratio control and picture control. The main ground is covered here (by Oppo) and here (by DVDO).


Footnotes

1  My first micro-controlled audio/video switchbox — built to my design in 1985 by my late (alas, in two senses of the word — he delivered the unit at the end of May 1988, and he went and died in the mid-1990s) friend Colin — had four composite video inputs, an independent video recording bus, eight analogue stereo audio inputs, and two independent stereo audio recording buses. S-Video (Y-C) and RGB had hardly reached the UK back then. I recently (June 2010) discovered a letter (dated 28th May 1988) that's relevant.
2  It decodes Dolby Digital and DTS 5.1 formats, but relies on incoming uncompressed decoded LPCM multi-channel audio data to handle the fancier surround sound formats that now exist. However, in July 2010, I decided to revert to simple stereo — hence the Rotel power amplifier. (I may yet add back in a mono amplifier to drive the centre [dialogue] speaker, but I'm in no hurry to do so.) The Oppo Blu-ray player outputs a perfectly acceptable analogue stereo down-mix from any surround material, and can also deal comfortably with the LPCM 2-channel material that some DVDs and Blu-rays offer. (Test results linked from here.)
3  I expect Freeview terrestrial digital quality only to get far worse, too, when the idiots in charge succeed in putting their five high-def national channels on that limited bandwidth platform. Unless we all equip ourselves with full spectrum high-gain aerials.