Setup and Yamaha 661 1080p/24 questions

bigcowboysfan

I will list my pieces, and how I have them setup as I would like to know if this is the best setup/ what is the importance of 1080p/24.
I have:

Panasonic TH-58PZ700U 58" Plasma
Toshiba HD-A30 HD DVD Upconvert DVD player
PS3
Directtv HD box
Yamaha RX-V661

The Panasonic only has 2 HDMI inputs, so I hooked the DTV and Toshiba HD to the 2 HDMI inputs on the AV receiver, then sent the AV HDMI to HDMI ONE on the TV.
I hooked the PS3 to HDMI 2 on the TV and am using optical to AV for sound.

1st thing, I have been reading and some say the 661 passes through 1080p/24 and some say it does not. I know the 661 does not support hdmi 1.3 (it says 1.2 in the manual) but does that have any effect on 1080p/24? How important is 1.3 in my setup?

I will be using the ps3 to watch blue ray and play some games (BD 65-70% gaming 30-35%).

I will be using the Toshiba for HD dvd and to upconvert some regular dvd's as well when I'm too broke to purchase BD or HD dvd.

I watch a lot of HD sat channels also, rarely any SD, and if my wife does, who cares, she can deal with a less than perfect picture. I can't.

Based on these viewing habits is my system setup properly to receive the highest quality the listed components have to offer?

I am still within the 30 day return window for the AV (actually all the items to be honest) so any experts out there that could recommend keeping or returning the 661 and/or any changes to my setup would be greatly appreciated.
Thanks.