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Is the 1.3 a video thing or audio thing?
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Both. Audio for the latest lossless formats like DTD-MA and DD-TrueHD, and video for Deep Color capability. This whole HDMI is more confusing than it should be. Look at
HDMI to learn more about it.
They are very popular and often recommended. I've only heard a two channel system at a friends house a few times and they are all they seem to be.
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especially with no way to here it before I buy.
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SVS (and others) offer a 30 day trial period with a no hassel return policy. Some make you pay return shipping, but there is no better way to audition a speaker than in your own house.
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Any specific models I should look at?
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There must be hundreds of brands to choose from. We all have our favorites but speakers can sound vastly different from one another and you might not like what I like. I like to use PriceGrabber.com or Shopping.com to see whats currently available. Then there are the internet direct companies like Ascend, Aperion Av123 (Rockets, xl-s) Audioinsider and Ozhometheater (Swans) and probably others. Even Emotiva and OutlawAudio are into speakers now, though a bit pricey. See, it's a jungle out there.