First of all, I couldn't find a perfect forum for this post, so I apologize if it does not belong here, and I will move it if I should.
I am looking to update my AV system, specifically my AVR and/or my projector. I am not looking for incredible, but I would like to improve somewhat.
Xbox 360, Wii U, PC -> HDMI to Monoprice HDX 401ta
HDMI switch -> S/PDIF Optical audio to Harman Kardon AVR 147
HDMI switch -> HDMI video to Mitsubishi HC1500
Cable TV is not hooked up very often, so it is not really a concern.
I have had some issues getting 5.1 surround from my xbox, wii u, and pc. I remember researching it and finding out that the HDMI audio signal has to conform to what the endpoint (projector) says that it can handle, which causes my signal to be stereo. If this is true, is there a way to avoid it? Would a newer AVR that has HDMI splitting allow me to remove the switch and still get high quality audio?
I am technically literate, but not very experienced with A/V setup details. My goal is to get as high quality of audio and video as I can without spending a ton of extra money. Any help/suggestions are appreciated.