When I tried a last generation Yamaha receiver, the documentation stated that the automatic lip synch is functional if supported by the display as well.

This means that a lot of us will be left out of that feature unless we upgrade the video display.

Is this your understanding as well?

This entire premature birth of HDMI is so frustrating. It might end up being a good thing, but it produced a lot of grief in the process of being finalized only because was rushed to market, for profit, and every iteration left another group of early adopters wishing they hadn't made the step...
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Alex