How does upconverting work with multiple upconverting devices?

[LordoftheRings]

Your Onkyo receiver does not have the Anchor Bay video processor but the Faroudja DCDi Edge.

* Your Panny BD player is set to 1080P, and it will do a good job too with DVDs.
* Your Sammy TV is already receiving 1080P from your BD player.
* And your Onkyo receiver is set to Video "Passthrough".

~ This is all from the HDMI connection.

And from the Cable TV or Satellite TV, or XBox 360, you'll have to check if your receiver or TV does a better job.
To check for your receiver, set it to 1080P.
To check for your TV, set your receiver to "Passthrough".
Just pick the one you prefer visually.