Back off topic, then back on: Just from my own experiences, I've definitely noticed darn good overall improvements in both picture and sound quality with Blu ray/hi-def and lossless audio vs. standard def/ lossy Dolby Digital, DTS, etc. so +1, check to make sure your system's hooked and set up correctly, and you should definitely hear/see the differences. My original comment was that, with HDMI 1.3, we already have more than enough transmission bandwidth to make the most of what we have today and the near future in terms of resolution and quality.
But, what if you did not have HDMI 1.3, can you still get hi-def/awesome picture and sound? Of course you can! Any recent vintage HD capable TV will have even standard HDMI, which is great for the hi-res pic from your Blu ray. And if said Blu ray spinner has internal Dolby TrueHD and DTS-HD Master decoding + analog outs, you don't even need HDMI on your receiver or pre/pro --you can use your Blu ray's analog outs to go straight into your 5.1/7.1 channel inputs on your receiver or pre/pro. Easy peasy.
HDMI is great for convenience, and 1.3 does have some neat capabilities, no question about that. But I was just trying to say don't worry about HDMI 1.4 yet. Heck, don't fret if you can't even do HDMI at all yet, as there are ways around it.
Oliver Amnuayphol
Home Theater/Audio Guru
Aperion Audio