Most people do not have a A/V w/ HDMI. The Best thing is to run a Optic line from the player to a A/V then run the video stright to the tv, there is less that can go wrong & the tv will get the best image. But looking at your A/V you do need to up grade, No DTS !!!!
Yamaha = most bang for your buck. I have 2 Yamaha's A/V's, a Yamaha RX-V1500 & a Yamaha RX-V520.
http://www.yamaha.com/yec/avreceiver...&CNTYP=PRODUCT