What I need clarification on is the difference between bitstream and lpcm (in simple terms please). From what I can tell in bitstream the player takes the 1s and 0s from the media and passes it to the receiver to decode, whereas for lpcm the player does the decoding then passes the 7.1 info in uncompressed digital form to the receiver.
I'm assuming this will allow the player to do the decoding rather than the receiver (AX4 only capable up to DTS-ES or DD-EX) and I can get the benefit of the HD formats without having to update my receiver (just yet). The players I have seen (including the PS3) mostly claim the ability to output various HD audio modes in 7.1 pcm via hdmi.
Any assistance appreciated.