If your player internally decodes the advanced codes, you can run the HDMI for video direct to the display and the decoded 5.1 LPCM stream via digital (coax or toslink) to your processor.
I didnt miss any point as the OP was talking about the picture and nothing more. Besides you could still go straight to monitor for video and use multi channel RCA connections if player has internal decoder for advanaced audio.........like I said, no point was missed just trying to keep it "to the point".
The answer involves more than video. HDMI is the preferred method for SACD, DVDA, DTS-HD, and all other formats if it can be used. Some processors actually improve the video depending on the source and the ability of the processor.
you can only pass DD and DTS via coaxial or optical, all the uncompressed formats DO NOT GO over these connectors. They have to pass over HDMI or via 7.1 analog connectors. If you are running your gear this way you have never heard DTS HD Master Audio or Dolby TrueHD.
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