Okay.. the $279 xbox arcade system i was told will NOT accept a hard drive, so i opted for the Elite sytem.. was only out of pocket $250 for the whole thing new.. and hooked it up last night and it sounds great through the HDMI cable, the system sees the DTS soundtrack!
The only thing is that while watching "Gladiator" it is not filling up my whole screen even using the new HDMI cable.. not sure what that is about... i did notice that with my old xbox the display settings would allow me to set at 1080p, the new one has 1080i selected but 1080p is greyed out, so i plan to plug in the HDMI cable to the TV directly without the receiver in the loop to see if it makes any difference in both resolution and the way it renders on the screen. i hope its not the receiver telling xbox it can only do 1080i because the Tv can handle 1080p, the xbox can render 1080p, and the cable i am using is HDMI 1.3 compliant so it should be pass through. at the main movie menu the whole screen is full, but when opening scene starts it goes to letter box, it is the wide screen version. maybe i need to test drive with a different movie and see if the "problem" follows.
thanks hori.. i will play with it in different sitting positions and see what happens, i do find that this system doesnt seem to want to put out a lot of bass which i prefer so i guess i need to run through the whole setup, play with EQ settings, sound levels, distance settings etc., to the desired sound.