What in the hell is an "SVS SBS-01" and a "PB10-ISD"? What brand is that? and How much is the optoma projector?
The reason why someone recommended a receiver with hdmi upconversion is because since you have a projector that can probably display 1080i or 1080p (I'm assuming this optoma is capable enough of doing that), it's much easier to run a single cable to the projector that carries both audio and video and have the receiver switch sources for you. It's simpler to install and you won't have to run a ton of wires to the projector.
I'm just about to buy the svs SBS-01 7.1 Set with PB10-ISD speaker system for my basement and I was wondering what a/v reciever I should pair it with. I'm pretty sure its gonna go with a front projection tv, namely the Optoma H78DC3, but I'm still looking. I was looking at the Pioneer VSX-72TXV because of its great ratings, but I'm not sure. My local home theater specialist recommended a receiver with HDMI upconversion, but I'm still not sure what that even means! Could someone please help me?