Update. I was able to get the XBox 360 (component) to output on the HDMI briefly. But then I couldn't get the HDMI inputs to output any longer. I had to go back into the input setup screen, where my blu ray and hddvd player were set back to 480P. I was able to get everything back running again, but I think the firmware may be a little flaky. Thought that I might have bricked it for a few minutes, had to go back to the component output and setup the inputs again. It also set my blu ray to 1080P, even though I've set it at 720 max for my projector. The 254 is scaling it back to 720P, I'll have to play with that a little more.
Here are my early feelings
Pros - Both audio and video look really good. Runs pretty cool, no real heat issues after about 4 hours of running at pretty good levels. True HD and DTS Master Audio decoding, gotta love seeing the DTS Master Audio up on the display. The audio confirmation on the display actually doesn't bother me, not a big fan of the pink color bar (tweakable I think). Looks great in the rack. 50 Watts is more than enough to drive my system. I was a little worried that it might sound too small, its got plenty of reserves and hasn't struggled with anything I've thrown at it yet.
Cons - Switching is a little flaky, not unexpected with HDMI. I didn't expect the component conversion issues, some HDMI sources convert back to component and the only way I can get my XBox360 over component is to go into setup and reconfigure it with an HDMI source running in the background.
Honestly, the only negative is the HDMI issue. I've setup a couple of Onkyo 605/705 and Marantz systems and they have all been much more stable on the HDMI side than the 254. Had I known, I may have gotten a 606 but I can live with it.
My remote was able to learn the commands so I can control most of the features now with my universal remote. Now its time to sit back and crank it up for a few movies.