Kr4 is correct but let me elaborate by saying that you need HDMI to get the highest quality audio meaning Dolby TruHD and DTS HD Master Audio playback. These formats are commonly found on many available Blu-ray discs and do sound considerably better than the lower resolution Dolby and DTS formats you can get with the Toslink optical or coaxial S/PDIF-RCA digital connections.
I also found recently that my AVR's HDMI 1.3 inputs will not pass 3D signals from a Blu-ray player although they have no trouble delivering hi-def 3D from Comcast Cable. If I plug the Blu-ray player directly into the TV and bypass the receiver then I can get 3D but have to settle for lower quality audio via Toslink or RCA S/PDIF. Blu-ray players and 3D tv's use the HDMI version 1.4.
I'll probably spring for a blu-ray player with 2 HDMI outputs in the future to circumvent this minor issue.
I also found recently that my AVR's HDMI 1.3 inputs will not pass 3D signals from a Blu-ray player although they have no trouble delivering hi-def 3D from Comcast Cable. If I plug the Blu-ray player directly into the TV and bypass the receiver then I can get 3D but have to settle for lower quality audio via Toslink or RCA S/PDIF. Blu-ray players and 3D tv's use the HDMI version 1.4.
I'll probably spring for a blu-ray player with 2 HDMI outputs in the future to circumvent this minor issue.