Fwiw, I have found that the HDMI connection from my decidedly consumer level Panasonic BDP provides better sound than the Toslink for two channel redbook playback, using roughly equal priced ($50) cables. The Toslink is plactic fiber I believe. I didn't know what to attribute this to since there are so many variables including quality of the electronics in both paths on both ends. The Arcam AVR 400 receiver I use in this system may have better implementation for receiving audio signal through HDMI, dunno.
The easiest thing I can control are the cables. I was skeptical of differences in digital cable quality until I fooled around with various consumer brands of USB cables from Radio Shack and Frys for my computer audio system at work and found a clear difference in sound quality (HP branded cable won). I will try some of the cheaper medical instrument high thread count glass Toslink cables and see how they compare with the "budget" Audioquest I'm using now, and see what I get.
The easiest thing I can control are the cables. I was skeptical of differences in digital cable quality until I fooled around with various consumer brands of USB cables from Radio Shack and Frys for my computer audio system at work and found a clear difference in sound quality (HP branded cable won). I will try some of the cheaper medical instrument high thread count glass Toslink cables and see how they compare with the "budget" Audioquest I'm using now, and see what I get.