Looks like the output is being downsampled by Windows 7.
You can fix this in the Windows 7 Sound settings. Control Panel > Hardware and Sound > Sound > Double click on HDMI Audio Device > Click "Advanced" tab, select 24bit-96Khz. (It must be "16bit-48Khz" there now).
That should fix it![]()
Actually that setting was selected but due to some detection problem it was not getting imposed. But thanks since following your suggestion I looked over there and after playing around it worked.
Now I have one question, earlier in this thread I was recommended that upsampling improves the audio. So I selected from control panel ? audio options the sampling rate as 24 / 192 and when I played the same on AVR the AVR is also showing the 192 sampling rate from input. But is the proposed upsampling happening here? Although I did not notice any improvement.