Well it sure doesn't look any better than the old model (RX-V730) so I guess it must have something else going for it, after all, they've whacked the price up another $100 (RRP $1599). OK so the power's up from 75 Watts X 6 to 90 Watts X 6. That helps but isn't a killer feature. It has zone 2 audio out - no big deal, the damping factor is up from 80 to 100 which helps the audio quality up a notch as does the "high current" rating of the output stage - no, the real deal is the video conversion which allows composite signals to be converted to S-Video or vise-versa, that may not seem like much until you look at all the video crap you have connected to the rear panel and then figure that you only need a single S-Video cable from the monitor out to the TV. No longer do you have to switch between AV1 and AV2 on your TV and confuse the missus.

    In my case at home I have DVD (s-video), Satellite (composite), VHS (composite) Set top box (s-video) and various camcorders and still digital camera's (composite). Lets not get into the s-video verses component argument  for DVD at this stage and agree that there's little difference in picture quality and you'll figure out that life is much easier in terms of hook up and operation with video upconversion. There is also component switching for those who like their DVD's and HDTV outputs switched (switching frequency is now up to 60MHz from the 730's 30MHz).

    The main problem for Yamaha (at least 'till the RX-V1400 released) is that the 740 sounds better than the more expensive RX-V1300, the RX-V740 sounds slightly fuller with greater attack so apart from better looks and 2 more digital inputs (7 against 5) the RX-V1300 is struggling to justify an extra $400.

    Using Joe Jackson's Night and Day as my test disc with Paradigm Studio 40's and the M&K V75II subwoofer, the RX-V740 delivered plenty of clean - some might say clinical - sound. I'm a great believer in plenty of clean grunt, the softer, more mellow sound of the Onkyo and the older Marantz products just don't do it for me. I figure that the whole idea of HiFi is to reproduce the sound of the artist as if you were there in the studio or at the concert with them, none of that wimpy lay back stuff for me. My reference receiver is a Yamaha RX-V3300 which has a damping factor of 200+ and 192kHz/24 bit DAC's, it sounds a little more "in your face" than the RX-V740 (damping factor of 100 and 96kHz/24bit DAC's) but it's not light years ahead in sonics.

    The movie reproduction is pretty good also with Yamaha's powerful 32 bit YSS-938 LSI. Using DareDevil as our test movie, the action certainly surrounded us with plenty of wham and bang when required but allowed the dialogue to penetrate to the fore when required. There was no obvious cross bleed of the channels and the sound stage was rock solid, quite frankly, the movie reproduction was indiscernible from my reference unit, it's only musically that the RX-V3300 comes into its own. As most of my usage is for DVD Concerts and CD playback, I still reckon the RX-V3300 is worth the extra, although we are talking an extra $2000 here.

    All the usual formats are catered for, Dolby Digital, DTS, Dolby Digital EX, DTS-ES Matrix and Discrete, Dolby Pro-Logic II and DTS Neo:6. (Oh, I almost forgot, it also plays in stereo). It has a phono input for those of you old enough to have a turntable and A/B speaker switching for those of you rich enough to be able to afford speakers in a second room.

    So where does that put the new Yamaha RX-V740 in the marketplace? With it's (at this time and at this price) unique video conversion, it's pretty much up there by itself in the $1500 to $2000 pricepoint, you'd need to go to the Marantz SR-7300 ($2199) to see or hear any advantage. Highly recommended

    I just reread this and feel I have to add the following -

Yamaha's RX-V540 and RX-V640 also have video conversion and high current, high damping factor amplification. I'll list the pricing and major feature differences below

RX-V540 - 70 Watts X 6, Video Conversion, @ $999

RX-V640 - 85 Watts X 6, Video Conversion, Front Digital and s-video Input, Remote controllable zone 2 audio pre-amp and line output, Pre-Amp outs, extra A/V input @ $1299

RX-V740 - 90 Watts X 6, as the 640 but with phono preamp input, on-screen display and input rename, aluminium front fascia and volume knob (plastic on the lesser models), LCD screen on the remote, DSP parameter adjustments @ $1599

Your call!