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Always "bitstream" if your using a HDMI connection. :T
And leave dynamic compression off as well as any other video enhancements provided.
 

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Are you saying my $2000 Denon 4520 is going to sound the same as my $200 Samsung Bluray?
Yup, there will be no audible difference between the two, even bluray video playback will be very close if not impossible to see a difference. As said above its the build quality (longevity) thats the big difference and in some cases upconversion of DVDs will be noticeable. You may also have more playback features like SACD.
Now comparing a $2000 player to a $70 player all bets are off.
 

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I'm not sure i understand what's being said here. How can there not be any differences? I'm not sure how your comparing am entry level bluray with a
A Bluray movie is digital and if sent to a 1080p display via HDMI the signal is unchanged and un altered. there should be no difference in quality between a $200 player and a $2000 player. where the change "may be noticeable" is in upconversion of DVDs and loading times.
Standards in Mass production of Bluray players has given the consumer much better quality than what was available 5 years ago. The same goes for comparing a $3000 receiver and a $600 receiver. I can almost guarantee there will be no audible difference if levels are kept within its specifications.
 
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