Since the HD-DVD and Bluray players all unpack the lossless audio and output it as PCM to the receiver, it doesn't matter that these NAD products don't unpack it. They accept PCM.
NAD Has Bad News and Good News
The bad news is that none of four new receivers have on-board decoding for the new lossless and other Dolby and DTS codecs. The good news is that modular construction will allow updates for this issue, in perhaps a year, and others that may arise. If you don't plan to buy a Blu-ray or HD DVD player soon, and prize NAD's consistent performance and high value, one of these new kids may be the receiver for you. They include the T 785, shown, $2999; T 775, $2499; T 765, $1999; and T 755, $1299.
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