Re: Toshsiba HD-A35 or Onkyo DV-HD805 ?
I would go with the HD-A35 and put the money you would have spent getting the Onkyo DV-HD805 on an Onkyo 875 (or better from the Onkyo/Integra line - I have the Integra DTC-9.8 myself paired with a Parasound HCA--2205 power amp) receiver instead. The main difference is the Reon chip for standard DVD deinterlacing and the 875 has this builtin. I'm a huge Denon supporter but it is clear that Onkyo has Denon beat this round - audio quality just as good and far better video options.
Since the 875 has the Reon chip built-in, if you send it 1080i from the A35 it will look just as good as the XA2 or DV-HD805 (that is exactly what the XA2/DV-HD805 are doing internally, anyway). The bonus, of course, is that your Blu-Ray player & HDTV deinterlacing will also be improved. Anything you feed the Onkyo 875 will be flawlessly scaled & upconverted to 1080p with Reon. And, you will get an audio upgrade to boot!
If you are concerned about 1080i setting for BD/HD DVD, don't be. I've done craploads of test doing direct 1080p24 output compared to 1080i deinterlaced to 1080p with Reon HQV and there is not a lick of difference on my Sony 60" 120hz HDTV. Plus, 1080p24 doesn't work with all hidef movies! Documentaries, concerts, and other material can be recorded at 1080p30 or 1080i, both of which stutter with 1080p24. So setting the HD DVD/BD player to 1080i is a better "set it and forget it" setting than 1080p24, and there is no quality difference so long as you are using a quality deinterlacer - again, like the Reon HQV in the Onkyo 875. Heck, with the 875's Reon HQV doing the deinterlacing you might even have a better experience with the upcoming Panasonic BD50 instead of the Denon transport; the Panasonic would be used as a "transport" in the same way in that there is no D/A conversion going on with video or audio, and the deinterlacing differences for SD DVD upscaling won't matter because Reon HQV takes care of that. Plus the BD50 supports BD-Live when the Denon does not - and you won't invest so much in a player that will probably be far outpaced in loadtimes by players coming out a year from now. If you say "hey, I won't use BD-Live anyway," then you can save some more cash and pick up the Panasonic BD30.
So, in summary, get an HD-A35 (set to 1080i) and an Onkyo 875 instead of your current receiver pick. It will look and sound just as good as a DV-HD805 + Denon 3808, but it is actually a less expensive combo AND *the rest* of your sources will look better on top of this! I would easily bet that the Denon Blu-Ray transport you are looking at will have better results with DVD upscaling when using the Onkyo 875 instead of the Denon 3808. Onkyo's Reon HQV is much better than Denon's Faroujda DCDi in the 3808, and that will be abundantly obvious with standard DVD. Better to be product smart than brand loyal.
P.S. -- With the current state of HD DVD personally I would save another $150 and simply get the HD-A3 over the A35. In the above combo you won't need to use the 1080p output of the A35 and the bitstreaming capabilities are not necessary either since very few HD DVDs actually use DTS-HDMA (no major US titles use it) - A3 has builtin decoders for the rest. Again, there is no D/A conversion so it makes little difference whether decoding is done in player or in receiver.
Toshiba HD-A3 + Panasonic BD50 + Onkyo 875 = $900 saved with better video quality and no significant audio quality difference... That $900 could then be used for more significant/noticable upgrades like getting the Onkyo 905 / Integra DTR-8.8 instead of the 875 - or tons of other things such a large amount of money could bring like new main speakers or a new sub. Heck, you could trade the Onkyo 875 for a Integra DTC-9.8 and use that $900 towards a
power amp and you'll have seperates! On the whole your theater will be improved all around by spending money in any of these ways rather than (IMO) overspending on the subtle upgrades the Denon transport would give you and lower quality deinterlacing on standard DVD the Denon receiver and/or transport would give you.