I currently have the following set-up:

PS3 - HDMI to 52XBR5
HD DVR Cable Box - HDMI to 52XBR5
52XBR5 - Optical out to STR-V333ES (older receiver, no HDMI)

The benefit of this setup is I don't have to switch settings for sound between Blu-Ray, Cable Box and HD Antenna. That said, is there any benefit from going directly from the component (PS3, HD DVR) directly to the receiver through an optical cable? Am I splitting hairs here?

TIA

I know that I've not been able to get my panasonic to pass through DD or DTS or anything like that with a similar setup. So i've done the optical route like you talked about and it seems to work fine. Since I'm in an apartment now, there is no box, just the cable from the wall so it's a little different, but i still couldn't get digital to pass through

Most TV's will only pass Stereo from the optical output for any of the inputs. The optical output will only pass Dolby Digital from the internal ATSC tuner. So if your receiver supports Dolby Digital, you will need to connect the device directly to the receiver. Don't use the TV's optical output for switching.

I know that I've not been able to get my panasonic to pass through DD or DTS or anything like that with a similar setup. So i've done the optical route like you talked about and it seems to work fine. Since I'm in an apartment now, there is no box, just the cable from the wall so it's a little different, but i still couldn't get digital to pass throughIf you have the cable plugged directly into your TV without a set top box and are using the TV's ATSC tuner for HD, then you should get DD 5.1 from the set's optical output to your receiver. Analog channels won't have DD 5.1 audio. But, most primetime HD shows do. If you aren't getting 5.1, it's probably something in how your TV is set up.