The specs in the CNET review say Analog Upconvert, so this receiver should do what you want it to. The Yellow cable is video and the Red/White are audio. Keep in mind that this connection is about as low quality as you can get, so don't expect a stunning picture after it gets converted. The Analog Convert is really for convenience so all input devices can connect to the TV through a single HDMI. This reciever also has HDMI Pass Through, which allows the receiver to pass audio and video from a device (like DVD player) to get to your TV without the receiver being on. I like this feature since it allows you to use the TV speakers instead of always needing to use the receiver and surround for audio.
Can you tell from my subject line that I am a noob? I am looking for a receiver that can take composite in and output HDMI - Researching seems to suggest that this is called upconverting or transcoding but it doesn't seem to be consistently explained on all product descriptions. Is this something the Sony STR-DH520 can do? If not can you suggest something in the $200-$300 that will. Primary use will be in a classroom, I am trying to keep the setup as simple as possible and not having to switch the TV input at all would be great. I appreciate any help you all can provide.