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There won't be any hardware upgrades to HDMI 1.3 (not only the HDMI chip, but various internal processing is different).

I don't know what the defaults are for audio, but you should be able to pick from a few different audio codecs.

The Panasonic player may or may not feature HDMI 1.3, as two HDMI chip manufacturers have said it may be Q1 07 before they're ready. If Panasonic wants HDMI 1.3, they will either have to wait or manufacture it in-house. There's only a few manufacturers that I would trust to do it in-house correctly: Panasonic is one of them.

Personally, I don't think we need all of these different audio formats. Both DTS-HD and Dolby Digital TrueHD offer a lossless soundtrack along with a backward compatible lossy soundtrack. With a decoder in the player, the output can be analog through the analog outputs and digital (PCM) through the HDMI 1.1 output. HDMI 1.3 will allow the undecoded soundtrack to be sent via HDMI to a receiver/processor with an HDMI 1.3 input (if you so choose). If you want to use the TOSlink/coax digital output, the lossy track can be sent this way. Voila -- you've satisfied everyone. Why do we need any of the other audio formats?


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