Bummer. I have a Sony HT-SF2000 with HDMI input/output. After reading your post, I went to Wal*Mart and picked up an optical cable. There are two TOSLINK inputs on the receiver, SAT and VIDEO1. I was hoping I'd get Dolby by simply using the SAT input. Nope.
But when I plug it into the VIDEO1 input it passes Dolby fine - just no picture!
I looked at the inscrutable manual and thought maybe it was a simple deal to select a different sound source for the satellite input, but no.
Anyone have any ideas? This receiver seems determined to get audio over HDMI.
Later on this evening: Sheesh. I was looking at the Home Theater in a Box forum to get ideas. For some reason, my SAT TOSLINK input doesn't seem to work as expected, but as I mentioned before, the AUDIO1 TOSLINK seemed to pass Dolby fine. So I ran the HDMI from the PACE directly to the TV and use the receiver to process just the audio from the PACE. Seems to work ok - although there's a great volume difference between Dolby and non-Dolby shows.
Hopefully the Dolby over HDMI will be fixed soon so I can recover my TV's extra HDMI input.