Do you know if your receiver will process the newest sound formats... Dolby TrueHD and DTS Master? If it will, simply run HDMI to the Sherwood and set the Oppo to bistream. If it won't, but will process audio through HDMI, you can set the Oppo to PCM.

Some players will also do the newest audio formats through analog, but you only need to use this if your receiver will not process them AND it doesn't have HDMI (this is what I currently do as my receiver is a whopping 2 years old)