HDMI vs 5.1 analog connection

OK. Then the issue of whether HDMI or 5.1 is "better" depends on whether you want to use the DSP/bass management in the processor. I believe that, with modern equipment, it is advisable to use HDMI and let the processor handle as much as possible.

If you want to be able to play back HD audio in 7.1 you will need a processor with 7.1 ins or HDMI and 7.1 channels. When using the 7.1 inputs you will be bypassing the surround modes in the processor or receiver and only be using the player's settings. There are other ways to do it but they are cumbersome.

It depends on the quality of the player. A cheap player will no doubt benefit form letting a higher quality proccessor do the work. A proccessor may also have bass management and room correction.

Mitch4t, Re: Coax vs. Optical
There are some variables to consider... i.e., the quality of your speakers and the rest of your electronics (most specifically your "source component." However, generally speaking, Coax has a wider band-width. and it has been my experience to higher sound quality from a good coax cable.

What if you only have 5 speakers and don't ever intend on setting up 7? I've been trying to figure this out too... I want the benefit of the lossless audio formats of blu ray, but if I use the player to decode and pass an analog signal to a 5.1 prepro, do I "lose" part of the movie soundtrack? Is there a setting on the blu ray players that have built in decoders where you can tell it you have 5 speakers and it mixes the 6th and 7th speaker into the existing rear surrounds?