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Tom Boz,
I have the Denon 2803 (a week old) and I am very happy with it but I have an upgrade itch (to the 3803 but not for the S-Video etc "upconversion") - more for the sake of spending more.
That said, I do not see any value at all in the video upconversion unless you are really in a bind. All my video sources go directly to my scaler (an Iscan Pro) and then directly to the TV. No enhancement can occur in the situation of routing through the receiver and all that occurs is video degradation. It will definitely be noticeable if one has a reasonably good eye and a display of good resolution. If you value convenience over image quality then that is the way to go but to me that scenario is designed for those who are not critical about their image.
Peter
Edit: I feel I have to clarify why I feel going through the receiver is going to be not upgrading but actual downgrading. Composite most definitely and S-Video to a much lesser extent are inferior delivery formats of a video signal than component. To do high quality conversion - and it will still be imperfect obviously - costs several hundred dollars. In a $400 to $600 receiver the quality of the "upconversion" is going to be #50 or so on the list of important items. I doubt it will be very high quality. I would believe that assuming that one has a high quality comb filter in your display device that it will be far far superior to that in the receiver. A high quality 3D comb filter is not cheap and it would be much superior to that in the receivers we are talking about.
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