Help me more fully understand this.
The Oppo is going to handle the audio decoding and feed two channel audio to the NAD through the analog out of the Oppo? The NAD then equalizes and splits the audio into 2.1 sending the left and right channels to the internal amplifier and a line level output to the powered subwoofer?
Via HDMI the Oppo sends the video to the NAD for switching? To accomplish this you need to add an HDMI module to the NAD?
Since you mentioned HDMI switching is there another source involved too?
Will the Oppo or the NAD deal with lip sync issues if there are any?
As I don't have either an Oppo or this NAD unit, I'm making some assumptions:
1. Decoding as well as speaker management, and I believe lip synch, can be done in the Oppo and the signal can be sent via HDMI.
2. The NAD, with it's bass mgmt and equalization, should take the already decoded audio from the Oppo. With HDMI, it should work if the Oppo is set to output the correct signal (decoded bitstream, I believe).....but, I'm not entirely sure.
3. The NAD has an HDMI output, so I'm assuming that it is should be able to just allow video pass-through (to the TV) and only deal with the audio.
A lot hinges on how the NAD handles everything via HDMI.