I have a Onkyo TX-SR804 receiver that does not decode the new blu-ray codecs. I am using a ps3 for my blu-ray player. Using a HDMI cable this receiver only supports Multichannel linear PCM (5.1 ch, 32–96 kHz, 16/20/24 bit). I want lossless 7.1 sound. (On the 10-15 blu rays discs that I own that have It). The receiver has 7.1 analog inputs. Am I better off getting a Panasonic DMP-BD80 that has 7.1 analog outputs or am I better spending about $50 more getting a refurbished Onkyo TX-SR607 which can decode DTS-HD Master Audio and Dolby TrueHD?

Personally, I would get a new receiver. You never know what may happen tomorrow. You might need more than 1 input for lossless sound.

I have a Onkyo TX-SR804 receiver that does not decode the new blu-ray codecs. I am using a ps3 for my blu-ray player. Using a HDMI cable this receiver only supports Multichannel linear PCM (5.1 ch, 32–96 kHz, 16/20/24 bit). I want lossless 7.1 sound. (On the 10-15 blu rays discs that I own that have It). The receiver has 7.1 analog inputs. Am I better off getting a Panasonic DMP-BD80 that has 7.1 analog outputs or am I better spending about $50 more getting a refurbished Onkyo TX-SR607 which can decode DTS-HD Master Audio and Dolby TrueHD?No reason to go analog. I would use the PS3 to decode the HD codecs to 5.1 PCM and let the Onkyo expand to 7.1 if necessary.

or am I better spending about $50 more getting a refurbished Onkyo TX-SR607 which can decode DTS-HD Master Audio and Dolby TrueHD?

As Kal states, let the PS3 decode. A PS3 doesn't bitstream the TrueHD and DTS-HD/MA codecs, it can only decode them. There is no other option with those codecs and the PS3, so there would be nothing for the Onkyo to decode. However, the Onkyo can accept the LPCM coming from the PS3, so no worries there. Just to clarify.

Unfortunately the 804 only accepts 5.1 channel PCM.

Well, I meant with the 607 or another HDMI enabled receiver.

If you're attached to the 804 and you want those codecs, then a blu-ray player with analog outs is about your only option. But honestly, that's a clunky setup.

Unfortunately the 804 only accepts 5.1 channel PCM.I know. Many AVRs can synthesize 7.1 from 5.1