I actually was thinking of that but I'm reading that the digital out from the TV probably will only pass stereo instead of the 5.1 that I want. I read the specs page[samsung.com] and thought that where it says "DTS Premium Sound 5.1" meant the digital out was 5.1 (because it surely isn't referring to the built in speakers, right?) but I guess I was mistaken.
Anyway, thx for the inputs. Haven't spent a bunch of time reading yet but everything I see at avsforums is geared toward newer equipment and doesn't necessarily relate to my receiver which is 6 years old at this point. I have to believe that video processing has come a long way since mine was designed so the relevance is questionable. The receiver has also been in a storage unit for the past ~10 months since we were in an apartment after relocating and I have totally forgot all the things it can and can't do. I'll tinker and see what I like best.
Dont let the guys at avs sway you too much. Keep in mind that those guys are on the cutting edge most often and arent as "budget conscious" as we are here. Video processing hasn't come that far in 6 years and i'd honestly be surprised if you could notice a degradation.
If it makes you feel any better, i run the HDMI directly to my TV and then use a combo of optical and coax spdif directly to my receiver. So far, i havent had any issues with this method, other than switching inputs requires an extra button push on a second controller.
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