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.
Another option is to stream audio/video to your Xbox 360 from your computer. Wireless is okay, but if possible, hardwiring is best.
That way, your PC may not even need to be connected to your AVR, just a suggestion.
