I'm no hdmi expert but i would think you would want the cleanest run possible for video without plugging it into 3 other things first then the TV, so that would mean running the hdmi from the xbox directly to the TV. But then i don;t know how you would get the sound from the TV to the receiver without optical out, unless the Tv has HDMI out ? I'm going to be getting a HDMI set top box and i plan on just using the HDMI for the video, but will plug in my optical cable and go right to the receiver.