Any way to avoid component cables in my set up?

Gear:

4 components

TV: LG 60pk550 plasma TV (2010) http://www.amazon.com/LG-60PK550-60-.../dp/B0038S41YM
DVR: Cox HD DVR
BluRay: LG BD570 http://www.amazon.com/LG-BD570-Netwo...3205020&sr=1-1
HTIB: Onkyo TX-SR304 NO HDMI http://www.onkyousa.com/zoom.cfm?cla...er&m=TX-SR304#

Primary Uses or needs:
HD television: would like 720p with dolby digital
BluRay: would like 1080p with dolby digital

I am worried that running any video through component will degrade the quality of my picture. What is the best set up to get true 1080p (or 720) with true 5.1 dolby digital surround with avoiding running video through my receiver (as it will have to be a component cable because there is no HDMI)?

Thank you afrogt, it is originally what I thought but in this set up, my TV/receiver will not be directly connected, which made me second guess myself.

Set up will be:

HD DVR: HDMI-->TV
Opt cable-->Receiver

Bluray: HDMI-->TV
Opt cable-->Receiver

4 cables total:
2 HDMI
2 Optical audio

Pretty simple for true 1080p and DTS or dolby