Home Theatre guru's. Need an opnion...

[RCM78]

I'm just starting research to build a home theatre system. I'm not looking for the absolute high end stuff since the room isnt that large.(15X17).

The Denon AVR 4306 looks pretty good for the money. The thing that caught my eye was the three HDMI inputs and the ability to upscale analog video to 720p or 1080i HDMI.

Does this feature really work or would I be wasting my money?

The TV I ordered (Sony KDL46XBR2) allready has three HDMI inputs so if the upscaling feature is BS then I could probably spend $1000 less on a reciever that would sound just as good as this one.

Whattaya Think??