Can today's 7.1 receivers decode the lossless audio formats found on HD-DVD and Blu-Ray Disks? Such as Dolby-HD and DTS-HD. I'm now contemplating the Denon AVR-887 but this article kind of has me scared off.

Read the last paragraph of this CNET article:
HDMI receivers: what to look for

If this is true I think I'll just get a $300 entry level receiver until these new audio formats are supported.