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I have a Sony KSDA2000 SXRD TV and a Shaw Direct 530 satellite receiver connected to the TV via componet cables and an optical digital audio runing to my JVC audio receiver. I also have a PS3 connected to the TV via HDMI and a second optical audio cable running to the JVC receiver. When I switch between the sat and the PS3 I have to switch the audio inputs on my audio receiver. Its not a big deal, just an extra step with the remote. I just received a new SD 630 satellite receiver which will be replacing my 530. It has HDMI output so I will be ditching the componet video cables and running HDMI for both the PS3 and the satellite receiver to the TV. The Sony TV has a optical audio output and since I will now be using HDMI for both sources I was thinking I could simplify things a little by connecting the audio receiver to the optical output of the TV. This would mean that I would not have to switch audio inputs each time I go from Sat to PS3. I believe that the PS3 is currently outputing 5.1 audio and the SD satellite receiver outputs whatever is boardcast which on prime time shows is also probably 5.1. From the manual of the Sony TV states that the digital audio out (optical) does the following: Dolby Digital Audio signal from the HDMI input will be output as PCM. I am not an audiofile however I do have a good 5 speaker surrond sound setup with a good JVC audio amp. Sound is very good on both BlueRays and on the satellite TV. Will this scheme with PCM audio be OK or will it be a major step backward from the 5.1 surround I am used to? Any comments would be appreciated. Thanks.
 

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The PCM output by the TV will be two channel sound instead of DD5.1. This is discussed in bold in the following FAQ and is a "major step backwards".

http://www.digitalhome.ca/forum/showthread.php?t=17870

Connect the devices directly to the AVR for DD5.1 audio and get yourself a Harmony remote to do all the switching with one button press. I assume that the JVC AVR doesn't handle HDMI audio.
 
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