I spent the weekend with my DSM-520 and returned it to Comp USA and bought a Playstation 3! For the following reasons among others:
1---built in blu-ray player in PS-3. I get "two mints in one", a super high quality Blu-Ray player and a multimedia center that plays photos and files from my network, and my media server in the highest resolution, all file formats supported.
2---Plug and play of digital camera via USB is VERY slick. Comared to the slow and unergonomic play of photos from the DSM-520, the PS-3 has VERY ergonomic, speedy and functional photo viewing, sorting and even deleting and cropping, in the PS-3, all from a digital camera connected directly.
3---AC3 and multichannel support of high res. files from the PS-3. As this thread began, I was not able to decode AC3 or DTS from the DSM-520, either optical, coax, or HDMI. And I'm a professional audio engineer, I know all the gotchas and the causes and I eliminated all that I could think of----> check that "volume" is up full, test the coax and optical connections with another source, etc.
4---ability to play VOB files. Apparently the PS3 can play VOBs direct, though I did not test this.
5---built in hard disk in PS-3. This can be a plus, though I haven't yet used the function, as everything is on our media server.
6----The online content (Active TV) that DSM provides is so lame and poor resolution anyway, it's all blown up low res audio/video from internet sources. Looks like crap on a high res TV. Keep it on a small computer screen and you could maybe live with it, but then why run the DSM-520 in the first place? So there's no value added from the DSM. The video rentals I could find are all very low res, no surround sound either.
7---I bought this box to add to my home theatre, so the PS-3 is just superior in every way-----I don't even play games and I'm impressed.
7----Multichannel audio support over HDMI, does not seem to be available in the DSM-520.
Many other ergonomic improvements in the PS-3 over the DSM. It's no contest. The on-screen graphics, menus, etc. from the Sony look much more professional.
The only issue is the PS-3 remote control is not infrared. But for $15.95 from Amazon you can get an Infrared remote that plugs into USB and then can use a universal IR remote or their remote. I'm sorry D-Link, I have to go. It was a nice 3-day tryout. But you can't compete with the PS3---it has everything you've dreamed of being and more. Sorry guys----I'm gone.