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It's one of three features Onkyo lists in the introduction to the SR674 on their website: Special Features * HDMI 2 Input / 1 Output, 1080p bandwith - ready for next generation DVD players * Auto Speaker Calibration with Audyssey 2EQ - Creates an optimal listening area, not a point -...

The 674 DOES convert composite, s-video, and component to HDMI as well as deinterlace from 480i to 480p. The 604 does neither (only pass-through). Both read audio from HDMI. The nomenclature w/ respect to how receivers handle video is somewhat convoluted... "upconvert" is the accepted term...

RS232 is not a video connection... it's used for automation control and possibly for firmware updates or EQ tweeking. HDMI is the only connection that carries audio AND video on one cable.

If you had an HDMI enabled video card or motherboard you could run an HDMI cable directly to the receiver and then on from the receiver to your display. The HDMI cable would carry audio and video. There are also some video cards that can facilitate component video output, and adapters available...