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Re: Entry-level receiver: do they all do composite/svideo video switching?
If you TV only has a single s-video and composite input, most likely you can only use one or the other format. Your set will probably ignore the composite input if you connect an s-vid cable. You'll need to choose one video connection type to use for all of your source components.
If the receiver doesn't have s-vid inputs, then it won't switch s-vid connections. Pretty self explanatory as to why. Not sure if that was your intended question, but that's how it reads to me. Otherwise, as Jeff said, if a receiver has video inputs and output(s), it should route the active input to the specified output unless defective. Some models will transcode from one video format to another so that in your case, you could switch composite video from a VCR and S-vid from DVD/PS2/etc. to your current TV's single s-video input.
I have noticed that some lower end receivers do have composite and component connections without s-vid...just reflects current technology trends since most(all?) of even the cheapest DVD players have component outputs and all HDTVs will have component inputs.
You can get external switch boxes that will switch s-video sources from Circuit City/Best Buy/Parts Express...even Target in the $30ish range. This would allow you to use the lower end receivers you mentioned for audio and route the video through the switch box, but you'd have to switch the video source manually.
The 504 has 3 s-video inputs so you'll immediately be maxed out with your proposed system until you upgrade your TV. You don't mention a cable/terrestrial/satellite broadcast source. That's another signal that would benefit from an upgraded video connection such as s-video, but requires a 4th input that the 504 doesn't have.
You'll also want to make sure the receiver you choose has the correct number and format of digital audio inputs. The 504 has 3 optical and only one coaxial digital input. Works for your proposed system. However, I've seen other receivers where it's just the opposite, which would be a problem if your PS2 and PC *only* have optical outs. I think my current cable box has both coax and optical outs, but the last model only had one format. Similarly, I've seen DVD players with only one output format in the past, but don't know if that's a current concern.
-Brent
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