I have my optical out (coax) on my HTPC going to the Denon 2805. I also have the HDMI/DVI cable from my Nvidia graphics card on my HTPC going to my Sanyo Z2 projector which only has DVI inputs.

At the present time I could care less about HD audio as I don't have a Bluray player.

M80s VP180 4xM22ow 4xM3ic EP600 2xEP350
AnthemAVM60 Outlaw7700 EmoA500 Epson5040UB FluanceRT85