So if i'm doing it like that, the video part of the 805 is less important to me, right? Also i can pass the video through but still have the 805 do the audio?
Yes, if you only have HDMI sources, the video upconversion on the 805 is irrelevant. With HDMI, all the 805 receiver does is process the audio stream, the video is pass through untouched.
I will most likely get a blu-ray now that the war is over, already have a xbox 360. I think that I have a better understanding of why I lost video from my dvd.