I'm seriously confused about users reporting blurring and audio problems with HDMI/optical I am having none of these issues.
Concerning blurring/judder, I have owned about 5 different LCD sets, many being native 60hz before the 120/240hz tech had been released. I find that if you disable the 120/240hz on these newer sets, the 60hz performance of them will not be as good as the older panels. That's why I've always enabled the 120hz to some degree, it's almost like they cripple the 60hz to show you the benefit of the 120/240hz so you "spend the extra $" for it. I swear that is true after comparing my 60hz on older LCD's to my newer Samsung, Sony, Sharp sets.
For the audio I am using an old 5.1 Sony HTIB via optical connection with the Sharp. I have many components running via HDMI into the TV and I have no problem enabling the 5.1 sound via my receiver. Can anyone be more specific that is having these troubles? IE you're running optical out to a receiver and then running HDMI from the receiver into your components (for audio) or are you running HDMI from your components direct to the Sharp and then running optical out of the set to your receiver? There was an option you have to change/enable in the menu to get the optical output to work, pretty sure it disables the TV speaker volume also. I'll have to check tonight.
Still very pleased with the set, I have made some minor tweaks and my edge light leakage is very minimal now. Every night since I got it I'm still very imporessed with the clarity, motion, size of it, love it.