It probably depends on the receiver how it treats video but most upconversion there will be to a resolution that can be passed through the HDMI. I don't think you will get companies to conceed who is the better chip maker for conversion. My guess is if your video source is already the resolution of the TV it will bypass any other conversion. For instance, if your BR player is 1080p already it won't need any changes and if your TV has a 1080p native rez then you are fine. Let's watch a VHS it may hit your receiver get stepped up to 1080p and then hit the TV at 1080p and not need any other conversion. If the VHS goes to the TV directly or your receiver only goes up to 1080i, then your TV may have to step it up a notch to hit 1080p. I guess the best path will require some experimenting.