Guys, my first post in this thread. I am a HK dealer. Let's just get that out of the way so people can confirm or deny biases. I have follwed this thread closely and was hesitant to even get a 354 for my demo room. I went ahead and bit the bullet just to see if all the bugs are in there. I have only had a few hours with it but I will confirm a few things.
1. It does not pass BTB/WTW
-Confirmed with HD DVE, SD DVE, Avia Pro
2. It has no issues with 1080p24
-Running this to a BenQ W10000 PJ from a Panny 30 Bluray and Toshiba XA2 HD-DVD the receiver has no problems with a 1080p24 source. This is verified in the menu of the receiver and PJ. Anyone not getting 1080p24 is having EDID issues with their display
3. The receiver pops on source switches, mutes, etc
4. The reciever will overlay DPLIIx over Dolby Digital and MultiCH PCM but will not over any of the new codecs (TrueHD, DTS Master). In these cases you only get 5.1 even of you are running a 7.1 system. I hope I am missing something here as the Denons will allow this and I liked this feature
Thats all for now. I will experiment more tonight and read the manual. Maybe I will come up with more issues or fixes. For me, the video side in fine. The audio sounds terrific on first pass. The only issues seem to be with the handling of the new formats.
April 2008 Build date BTW.