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Yes - the player probably with have some basic bass management. Some rec'rs have bass management over the analog inputs. As long as those suit your needs it will work. The other advantage of going HDMI 1.3 is that by going analog you're probably going thru an extra analog to digital conversion...

No - you're stuck with the bass management in the player or what can be done with the analog inputs of your receiver. If these are OK for you then you are fine. Some receivers don't have bass management thru the analog inputs.