HDMI and DVI is ALL digital!. Both audio and video are transported in the native digital format. Using an ALL digital format minimizes the D/A and A/D conversion needed. Each conversion adds some degree of "distortions" to the picture due to the resolution of the A/D. Going ALL digital ensures that you get the purest signal to your monitor. This is the advantage of HDMI or DVI compared to regular analogue component video. Vast majority of the HD monitors are inherently digital in nature, so it only makes sense to use a digital link such as DVI or HDMI.

In addition, HDMI is a smaller physically ( about size of USB connector) and carries both digital Video and Audio in a single connection.

The most recent available version of HDMI is HDMI 1.3. HDMI 1.3 specification has provisions to eventually double the bandwidth of equipment from 4.95Gbps to 10.2Gbps. HDMI 1.3 is completely backwards compatible with previous versions of HDMI. For example, if your display is HDMI 1.2 and your sources is HDMI 1.3 capable, then the system will arbitrate so the correct version/features are implemented.

Vast majority of HD players prior to 2007 support 8 bit colour depth. Some of the newer HD sources such as the PlayStation 3 and second generation of HD DVD/Blu-Ray now supports 12-bit colour and can output up to 6.68 Gbps bandwidth.

HDMI 1.0 - Initial HDMI version release

HDMI 1.1 - HDMI 1.0 with support for DVD audio

HDMI 1.2 - Supports SACD audio

HDMI 1.3 - Increase bandwidth, offers support for 16 bit colour, offers features for auto lip synch correction, adds support for True HD and DTS-HD Audio.

The Main difference between HDMI and DVI is that the video portion is same as DVI. The main difference is that HDMI also carries multichannel digital audio. DVI only supports video. HDMI is backward compatible with DVI