Thanks JD. I think that makes sense.
My Zone 2 will typically just be a regular HDMI enabled flat screen TV. I didn't realize that the AVR would be aware of the capabilities of the destination, but it sounds like it must communicate that information back for appropriate mixing. I figured the AVR just dumped the signal and left it to the TV to deal with, but I guess that's the world of digital.
It sounds like I'll be fine as long as Zone 1 and Zone 2 are always watching separate content.
One follow-up question: I did run another HDMI up to my other family room AVR which supports DD 5.1 via HDMI in the thought that in the future I may want to spread a large group across both living areas watching the same movie. Would I be okay in that case to run my 9.2 in the theater and 5.1 in the family room from the same source at the same time? I'm hoping my other receiver would take it as a signal just like any other HDMI input right?