Kenwood VR-208

[Showtime99]

Hi everyone, I have recently joined the forums and have a question. I currently have a "el cheapo" htib (regent 5.1) that I use. I also have a old Kenwood vr208 that I use to host outdoor movies ( in 2 channel stereo mode) from time to time. How would the Kenwood do if I decided to boot the regent and build around the Kenwood reciever ? It supports 5.1, has a sub out and digital. Would I be able to have true HD lossless out with this unit ? Thanks a bunch ! Here are some specs on the Kenwood below.

Kenwood VR-208 home theater receiver 5.1 . FEATURES:
Audio Inputs/Outputs
Digital Audio Input: Coaxial & TOS-link (Optical)
Balance Control - Bass and Treble Controls
Bass Boost - Bass Management
Quick Setup

Digital Signal Format:
Auto Detection/Auto Switching Dolby Digital and PCM
Dolby 3 Stereo
Dolby Digital
Dolby Pro Logic
Speaker Preouts
250Watts total power