The AVP is positioned as a decoder with non digital video support.
Recommended and logical configurations that work with the AVP16:
(1) HDMI or DVI DVD Player directly connected to the video display, S/PDIF from DVD connected to AVP-16. Multiple HD non-digital (1080i YUV) connected and switched through AVP-16
(2) HDMI sources connects into HDMI upscaler/switcher such as DVDO, audio decoding by AVP16.
Even with HD DVD, the audio decoding through S/PDIF is still supported, and DVD-Audio / SACD supported via the 7.1 analog input.
Both configurations offer the most bang for the bucks. For highest performance HDMI switching, obviously product like DVDO iScan VP30 which takes in a native 480i HDMI stream is more appropriate.
Nuforce is not a video company, and we are not in prepared to offer cutting (bleeding...) edge video processing function, but we would add HDMI when it HDMI 1.3 becomes more mature. Video companies like DVDO does a much better job and the combined cost of state-of-the-art HDMI upscaler/switcher + Nuforce AVP costs less than any other competing solutions out there.