1) Are there any problems with the PS3 and the Yamaha V661? I know there is a problem with the PS3 and the Onkyo 674 after I checked this forum and I was just about to buy the Onkyo too.
As far as I know from other users in previous posts, the Yamaha RX-V661 is a perfect match. There are no known issues. Again this is from a previous poster in the first page of this forum. Check it out for accuracy and confirmation.
2) Does the video degrade when connecting the devices to the receiver and then to the TV (all via HDMI)?
The technical answer is yes. All, but the best and most expensive video switchers/processors degrade the signal. Now for the real world "can you see the difference answer," no I can not tell the difference between a source connected to the receiver or through the television directly via HDMI in both instances. I must confess however, that I wasn't sitting there looking trerribly critical though. I just enjoyed the show.
3) Can the receiver output 7.1 (well, 6.1 in my case) if connected with an HDMI cable?
4) And is it really a big deal that this receiver will not go from 480i => 480p like the Onkyo 674?
Depends on you only. For most including me, I can say it wasn't an issue.
From reading the posts on this forum, I'm seriously considering this receiver but I want to make sure there are no big issues that I may regret. Thanks in advance.
I can't comment on the regret....to each his own...but I do know that for the money, the Yamaha RX-V661 is a competent receiver which does what it say's. Most of all it provides the user with practical, and useful features; HDMI Switching with audio processing, YPAO room correction, and a "full boat" of audio processing modes to include to excellent modes for restoring the audio quality of compressed audio just to name a few.
Since selling the Yamaha RX-V661, I've been having second thoughts on selling it.
I currently have in it's place an Acurus ACT3 w/ABM, along with separate amplifiers. Bi-amping the front 3 channels and using a 6 channel separate amplifier for the 4 rears does give better S.Q. than the Yamaha RX-V661, but I'd bet it has more to do with the separate amplifers than the processor.
Maybe I'll get another 661 someday.... Or....