REQ input on HDMI Bit-Streaming Audio and HTPC Video Upgrade

Back Story: About 3 years ago I setup my own HTPC to serve up movies mainly through WMC to my home entertainment system. The idea was to have the HTPC connected to one of my receiver's inputs and then use the receiver to switch between the different inputs. Unfortunately, back then all the pieces were not available and I had to make some compromises. Namely: I used a nVidia 9600GT w/ a DVI -> HDMI converter for video and Azuntech X-Fi for sound w/ plans to add the "HDMI daughter board in 6 months when it became available. Of course the a-holes at Azuntech never release the DB and then offered to upgrade me to their all in-one solution for a cool $200. Thanks but no thanks BOHICA isn't my thing although I do hope Azuntech is losing its shirt in the double dip recession !

The other issue was that the video never worked well with my receiver (A Sony STR-DA6400ES). Basically, the Sony has two modes for HDMI operation selected through the video direct option. If video direct is off, the HDMI signal is taken in by the receiver and overlays are added (e.g. volume control, input name display, etc...). If video direct is on then the signal is "directly" relayed through the receiver. My HTPC only worked w/ it on. If VD was off then no signal was passed at all. W/ it on I could see the POST screen, and then the windows boot and login screens! Aside from missing out on the nifty overlays my blu-ray player much rather have VD off then on (opposite my HTPC).

Fast forward to today: I've been following the state of affairs and the ATI 5xxx series seem to be an excellent card for HTPCs. So I Picked one up (5670) at the local Fry's. Installed /w Catalyst 10.8 and expected to settle in for a lot of debugging (given how long the thread on the 5xxx series problem list is). Surprisingly it works and works well 90% of the time. The VD issue remains somewhat, initially the system would not work at all w/ VD off. After installing the drivers the system now will not show me the POST screen and the boot screens but will show me the windows login and work from that point. I can live with this. The audio seems to work just fine, was able to play Iron Man blu-ray w/ TMT 3 and got the decoder light on y receiver as well as the indicator for DolbyHD. Here are the concerns/questions I have and hope you guys can help with:

1. Is the 5670 a good choice for mostly Video viewing (using WMP, WMC, TMT) and light gaming (heck mostly I do emulators on this system like M.A.M.E., ZSNES, etc...)? I like the fact that it does not req. a direct power line from the PSU and it is as quiet if not quieter then my GT.

2. Does nVidia have anything that will bit-stream audio like the ATI card and in the same power/price class as the 5670? Anything in the pipeline? I like the nVidia products and have them in my other 5 computers. When it is time to upgrade drivers/trouble shoot it makes my life much easier to be working with as few variables as possible so I'd rather go nVidia (even if I have to wait a few months)?

3. Same for ATI? Any point in waiting for the 6xxx? Specially if they are being released in two months? I don't have a 3D TV and don't plan on getting one for a while.

4. I can ditch my X-Fi card, correct? The ATI should handle all audio needs?

5. Any ideas on how to get the card to play nicer w/ my receiver? It is not an EDID issue as EDID should not come into play during the POST sequence. If it works in every other way I am cool with it. I can always turn VD on for work in the BIOS...

Sorry for the long post and thanks for any help.

Bumping as I am still looking for some help! Thanks!

Thanks for the reply. I did manage to get through the 11 page thread on nVidia 460. Only questions I have is if the 430 will be a dingle slot solution and will it req. a seperate power connection? I've seen specs on the procesor and memory but no power usage specs.

Thanks. I may have to end up waiting though as the ATI is not working, for me, under Win 7 WMC. For some reason when I try to use My Movies and WMC to play back a DVD it stutters for a bit and I get a video error. The same DVD, plays fine if I use My Movies and TMT or if I just use WMP, TMT, or whatever other player outside of WMC. Really weird.

Nice. A quite one may then just be the ticket (assuming they get all hedriver issues worked out and there is proper support for bitstreaming w/ TMT and/or PDVD).