Sony STRDG720 7.1 Audio Video Receiver

[Firestreak]

http://www.amazon.com/gp/product/B00...NNACATNQXQ9MY5

If I pick up this receiver, will I get full use out blu-ray/ps3/xbox 360 audio capabilities? I was thinking about getting this bad boy because...

It's cheap..
It's got 7.1.
It has 3 HDMI inputs,so I can hook up my PS3, Xbox360 and PC and put the video to my TV all through a single HDMI connection. - Right now I have to use an HDMI switch, and an optical switch for sound... and my xbox 360 can't get both surround sound and HDMI because the setup only allows the HDMI to be plugged in or the other cable that has an optical jack build into it. - Assuming this receiver will fix the problem and allow me to switch everything via the remote.

So basically I have 2 questions, because I'm really an audio newby. Will I be missing out on any important audio codecs, or will I be fully capable with high def surround sound?

Am I missing something? This seems like a killer deal for the price.

Speakers... I've never bought a lone receiver before. My 5.1 setup, which I'll probably be giving to my friend, came with the speakers. How do I go about this?

Thanks, any help appreciated.