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When you use variable audio output and the TV volume is set very low, you A/V receiver must amplify this very low power signal and you end up with a horrible signal-to-noise ratio. I always prefer to use fixed audio output and adjust the volume on the receiver only.

The splitter is probably the way to go. If I remember correctly, the Toshiba is only supposed to output the currently-tuned channel on it's antenna out connection. This is normally used for an external pay-TV decoder.
 
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