Well, FWIW, I have a Yamaha 5.1 system. The BD player goes into HDMI1, the AppleTV2 goes into HDMI2. HDMI out from the AVR to HDMI1 input on my LG. Optical out from the LG to the optical AV4 input (for tv use) on the AVR. TV reception for us is OTA only so the optical out is used for DD5.1 audio from OTA only. Via my Harmony remote, the AVR is programmed to select the correct inputs (AVR and tv) and turn on which ever component I want to use with full functionality. As far as listening to the iTunes only without turning on the tv that may be a little more complicated. You could program a Harmony to have two AppleTV Activities. One for streaming (the tv is on) and the other one for iTunes only (the tv is off) but you'd have to control the iTunes from your laptop and make sure that the AppleTV was set to access all of you libraries. However, now that I think about it, you still have to select which feature of the ATV2 you want to use, movies, tv shows, sports, iPhoto, iTunes, etc so I'm not sure how you would do that without the tv being on to see the menus unless you can set the ATV2 to default to a particular option. I never really gave it much thought though because the home audio system is in another room (I like having audio and video separated) and I just plug in the iTouch or stream to that receiver for music.