If you arent planning on running video through your receiver, your tv wont even be in contact with the receiver and I wouldnt worry. Most people dont run HDTV video through receivers anyway. When it comes to HD picture, I will only run mine direct Via DVI/HDMI and keep needless extra connections(like a receiver) out of the loop. Unless you have a high end receiver, it wont have DVI/HDMI ports anyway, and I would never consider using component cables with my HD picture. Some people do it though.
I've never heard of TV and receivers having compatibility issues, and wouldnt give rumors like that a second thought.
If you have a high end receiver with DVI/HDMI ports, and you heard there were compatability issues with that.........Well, then your question is out of my league.
Thanks. I guess I'm a little confused on the set-up, being new to home theater. I assumed that the DVD player inputed to the receiver or preamp, then receiver to monitor/TV and of course to the speakers. From what you're saying, I assume the DVD connection is directly to the TV. In the past, I have always simply ran a DVD or VHS to the TV and used the TV audio.
The 507 is a high-end receiver. I've been looking at it as well as the Sunfire. I'm not sure about the DVI/HDMI ports but it is advertised as having video transcoding of composite & S-Video to component, although I have to admit, that's above my knowledge.