Current setup:

AV Receiver – Yamaha RX-V2300 (it does not have HDMI input or output)
TH-42PX60U television (it has 2 HMDI inputs)

I'm interested in getting an OPPO DV-981HD

Question:

If I connect the DVD player directly to the TV using the HMDI cable does the audio from a DVD process simultaneously through my AV receiver which is connected to the DVD player using 5.1 audio out cables? Will I get 5.1 surround when watching movies?

kjsd

The 981HD will output audio from the coaxial and optical digital outputs all the time (except when playing an SACD, due to copy protection requirements). If you connect the DVD player to the TV via HDMI and to the receiver via optical or coaxial, you can still get DD and DTS audio to the receiver. I might recommend setting HDMI Audio to "off" in that setup so that the TV doesn't also get audio.