....to connect a high definition source deck in order to pass the high def video (1080p) AND high resolution audio from that deck to a receiver and TV?

The way my gear is connected is like this:

AN HDMI CABLE COMING OUT OF MY PANASONIC BLU-RAY PLAYER'S "HDMI OUT" GOING INTO MY ONKYO TX-SR605 RECEIVER'S "HDMI INPUT 1"...

AN HDMI CABLE COMING OUT OF THE ONKYO RECEIVER'S "HDMI OUT" GOING INTO MY SONY SXRD TV'S HDMI INPUT....

I keep the receiver's "MONITOR OUT" selection on the ON position and seem to get video passed from the Blu ray player that way....is this setup correct for sending all video and audio over HDMI? Better yet and more importantly: does the 1080p video output from my Blu-ray player get to my TV even though the signal is running through a receiver? Is the receiver degrading the signal somehow? NO OTHER connection is being used, JUST HDMI, so it SHOULD be straight 1080p right through the receiver out to my display, right?


AMPLIFICATION/PROCESSING:
ONKYO TX-SR605
Onboard Dolby Digital Plus, Dolby TrueHD, DTS HD, DTS HD Master Audio; HDMI 1.3a

SOURCING:
Panasonic DMP-BD10A Blu-ray Disc Player
marantz CC-67 5-Disc Compact Disc Changer
marantz DR700 Compact Disc Recorder

LOUDSPEAKER SUITE:
Mains: polkaudio R20
Center: polkaudio CSi30
Surrounds: polkaudio R15
Sub: polkaudio PSW10
Stands by Sanus Systems Natural Foundations

DISPLAY:
SONY 50" SXRD Rear Projection

POWER PROTECTION:
APC SurgeArrest

INTERCONNECTS & SPEAKER CABLE BY MONSTER