Thank you Dave. He also mentioned I shouldn't run my Dish box HDMI to the receiver for video as it is being degraded and that i should go directly to the tv. Should i do that?
Also, as I was going through the sat box, I noticed in the setup it was set for Dolby Digital/PCM and RF out. This ok.
Again thank you for the help my friend.... I tried to show him the receivers manuall to show they say HDMi does it all, yet he would have nothing to do with it. Made me feel like im kinda, well Mis-Informed and my setup I did was all wrong and im enjoying a seriously flawed setup...
The entire line of 2007-2008 Yamaha receivers had a problem with HDMI where they clipped digital video below a value of 16 and above 235. This would have affeected the 463 receiver. The problem was fixed and supposedly the 465 passes video unaltered.
That is the only reason to connect HDMI directly to the TV. Satellite broadcasters only have stereo or Dolby digital 5.1, which can be sent over HDMI or via the optical or coax outputs.
My DirecTV HR20 has has issues in the past with audio over HDMI (I think has been resolved for some time), so I wired the optical out of my HR20 DVR to my Yamaha RX-Z11 receiver, which also clips video ( but I live with it).
Also, the upconverting of input signals to the receiver to 1080p can usually be turned off in the receiver to make it pass through. At least I can with my RX-Z11. My TV processes 480i better than the Z11 (Yamaha did not choose a great processing chip for their flagship receiver and is one reason it has died a slow sales death, along with refusing to fix the video clip issue with a firmware update).
Blu-Ray players and the PS3 must be connected via HDMI to experience the best high resolution audio. PS3 coverts the high resolution audio to LPCM over HDMI. Other Blu-Ray devices can do the same or bitstream the audio to the receiver. In both cases, the data rate is too high for optical. Most players downrez the audio over optical or coax. Your receiver is capable of decoding the high resolution lossless audio codecs, so enjoy the best that audio can offer!