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Will the Onkyo TX-XSR505 receive lossless TrueHD audio as PCM via HDMI from my Toshiba HD-A2?

Update: My tx-sr605 is a victim of the constant clicking, apparantly this is a known problem with this model... I have returned it and am considering purchasing the tx-sr505 until I can save up enough for my denon 3808... will this tx-sr505 accept lossless audio via hdmi so that I can still get...

Two stores near me have EXCELLENT prices on two systems that I am considering picking up because its such a good deal.. They are the KEF 2005 system and the DEF TECH ProCinema 600. In everyones honest opinion, which would sound better in a room about 16x12

So technically I didnt need the tx-sr605? I could have gone with the tx-sr505? I wonder how it will sound with my setup: TOSHIBA HD-A2, ONKYO TX-SR605, KEF KHT-3005

I am probably just confusing myself but here goes, I have a Toshiba HD-A2 and an Onkyo TX-SR605. I want to take advantage of Dolby TrueHD and DTS HD. How would I connect the player to the receiver to get this audio? From what I have read the toshiba is hdmi 1.2 which doesnt support True HD...

I can get that setup new for $560 without shipping, I also was looking into possibly the Onkyo receiver with a KEF KHT-3005 for about $1000

Im new to this stuff so please go easy on me =)... I can get a really good deal on an Onkyo TX-SR505, Klipsch Quintet III 5 speaker package, and Velodyne VRP1000... would this setup sound good together?