Using a cheaper receiver as a decoder and Switcher? Doable?

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=230714822295&fromMakeTrack=true&ssPageName=VIP:watchlink:top: Would something like this work?

Just get a blu ray player with analoge outs and have the player do the decoding. Go with an OPPO, they have top notch DAC's.

Your 5.1 versus 7.1 problems probably stem from having an original AVR-5805, not the AVR-5805 Mk2 or AVR-5805ci. The original 5805 apparently only supported 5.1 digital audio, you need one of the later revisions to get 7.1 over HDMI. You'll be limited to 5.1 discrete channels plus Dolby ProLogic IIx to generate the surround backs over any digital input.

I don't really see the point of trying to use your AVR-5805 by connecting to another receiver's pre-outs. You might as well sell the AVR-5805 and and buy a external power amp to connect the to other receiver's pre-outs.

Assuming that the receiver is the reason why you're only getting 5.1 PCM over HDMI, and it's not the fault of your Dune player then a simple HDMI 7.1 PCM to analogue converter like the product your already found or the AT-HD570 is your best bet. You're not going to find a cheap converter box that can decode DTS-HD or Dolby TrueHD. Even AV receivers with multichannel pre-outs aren't cheap.

What content do you have on your dune that is 7.1 dtshdma or dolby true hd?

gotcha. That receiver you have is a beauty. If I were you I would look at replacing the dune player. Your issue sounds to me like owning a ferrari and buying a honda civic to drive you to and from work b/c the ferrari doesn't have a cd player.

IMO the difference between standard DD and HD-DD isn't great enough to warrant buying a bunch of gear in an attempt to cobble a sound system together for it. I'd go with the suggestion for an Oppo player. They have preamp out jacks and decode HD sounds internally. Many other players also do this - its just that Oppo seems to do it better. I love my Oppo player. As I said - my opinion only. For that $1000 you paid for an AVR that can't decode what you want to hear you could have bought an Onkyo NR818 and had over $300 left over to buy some BR-DVD's. And some beer!

You sound like a candidate for an HTPC (I like XBMC, but everyone has their biases) or an Oppo BD Player much more than a candidate for a new AVR. After spending time with several "media players" I've found that most try to do too much with limited hardware or underdeveloped software. Most people are either better off going with basic functionality that works well, or moving up to a true HTPC if they really want to do it all.

The Oppo will give you basic file playback and top notch hardware, all of which will (more or less) just work.

An HTPC will give you the ability to configure everything do exactly what you want and look exactly how you want, but with some effort involved. You'll want to find or build an HTPC with 7.1 analog outputs to overcome the limitations of your AVR... otherwise, you can go as minimal or as hog-wild as your budget, time, and functionality desires dictate.

Get the OPPO BDP-103 or BDP-105, feed the HDMI of the Dune (LPCM only) into the OPPO's HDMI input, then output the 7.1 analog sound out of the back of the OPPO directly into the 7.1 input of the AVR-5805. Viola!!