I spent some more time with the 605 and the picture adjusts itself if I change the aspect to H-Fill or Just. In Full, I get the bars all around. My biggest complaint with the previous HDMI up-conversion receivers that I tried before, is that they would degrade the picture going from Component to HDMI. This receiver did the same at the begining. But once I popped the AVIA dvd and recalibrated my TV keeping all the TV settings intact, and changing the picture settings in the receiver ( which is possible to navigate using the remote once the secret menu is up and running), the outcome was great. I am getting now 720p (according to the display/recall on the Panny plasma), the right aspect (16:9) and a great picture. I will be probably getting my HD player for Christmas. Until then, this will satisfy the kid in me.
I switched between component to components pass though the receiver to the Panny (480p) and component to HDMI (720p). The difference in somewhat noticeable. I am so used to see my player in 480p (softer picture) that with the up-scaling to 720p is hard for me to get used to.
Played a couple of scenes from the Fellowship of the Ring (which I know by heart) and the sound was perfect. Hard to say if this is an improvement from the 604 and 674 that have also gone through my rigorous testing.
Please let me know if you have any questions, but nothing that has to do with HD-DVD, PS3 or BD, as I don't own any yet.