I think my question got lost to the new replies when it was merged with this thread, so here it is:
It was decided that since I could not use audio through HDMI, I would have to use an older codec through Optical, or use analog RCA cables. Since the kind of RCA cables I use would cost more than the player (to hook up all channels), that idea is out. So I have to use an older "lossy" codec through Optical. So which would be best to set my receiver to:
Dolby Digital decoded in the player with direct setting on Receiver
DTS decoded in the player with direct setting on Receiver
Or have the receiver set to decode with THX Cinema decoding, THX Music, DTS-Cinema, DTS-Music, or Dolby Digital?
My receiver cannot decode DTS HD or Dolby HD itself, and does not support HDMI audio to have the player decode those lossless formats.