Perc, welcome. I'll comment on one point: there's no bandwidth or other problem involving transmission capacity that would prevent either toslink or a regular digital coaxial cable from being used for these formats. The problem is copy protection paranoia and only a digital transmission link with inherent copy protection(e.g. HDMI)or an analog link can be used. Toslink is inherently a digital link and for that reason can't be used, but it has nothing to do with inadequate bandwidth.

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Enjoy the music, not the equipment.