I’m looking to get an entry level receiver ($800 or less) and see some advertised with Anchor Bay or Faroudja chips for processing/scaling.  Is it better to look for one with these in it and run all HDMI through the receiver or not be concerned with receiver processing/scaling and let the TV do it?

Sean,

Processing is important in new sets as they have over 2 million fixed pixels (1920x1080) and most of the content we watched is at lower resolutions.  You need a good processor to convert the signal (essentially fast at math right?).  The chips in the TVs are very inexpensive chips typically.  More expensive chips are in the higher end sets,

Example from one manufacturer. . .Sony(may have changed slightly, but still relevant)

Their LCDs have Bravia Engine, Bravia Engine 2, Bravia Engine Pro, XBR.  As you go up the ladder, you get better processing.

The processors in receivers are typically a step up from those in most TV sets.  If you buy a receiver with a processor inside, you can go down a model or two in the TV as you no longer fully utilize its processor.  The receiver gives it the right amount of pixels, and the TV processor doesn’t have to work as hard.

Buy a receiver with built in processing, and then buy a TV with high refresh rate 120 or 240 Hz, and high contrast ratio and viewing angle.

This should give you the best bang for your buck.

However, the effect is extremely subtle. I have an insane HT. Really insane. And I’m still keeping it as my processor for the time being. I didn’t even learn of this till very recently, and I visit AV boards on a daily basis.
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The effects can be negligible.  They can also be more than that.

It depends on

1)  Your display (it may already have a good processor)
2)  Your source material (a 480i VCR or 480P DVD/Cable Box may get much better end quality on your display when being processed by the receiver, than by your integrated processor in the TV, whereas a 720p or 1080i signal from an HD Satellite box may show little difference.)

Weigh what you will be watching, as well as what you will be watching it on into the equation.

Again, if starting from scratch, a name brand TV with a low end processor but great contrast, viewing angle and refresh rate coupled with a Faroudja or Anchor Bay processor based AV receiver, usually nets your best performance per dollar.  IMHO

Get a good processor

Get a high refresh rate if you are using it for games or watching sports.

Gathered lots of good stuff about Tv. Processing and receiver.

Get a good processor,best choice

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I have an insane HT.

Obivus TV