Yes I am doing it from my pc. I wouldn't have any degradation to use optical instead of hdmi? How hard is it to switch between audio / video modes on the avr? This is my biggest concern.

Say I watched a video on my computer then wanted to play a game on my 360. I switch the audio and the video signal separately yes? Sorry I am likely just nit picking. :P Just curious about the process because I have never done it and know no one who knows about it.