A little confusing, but if you have High Speed HDMI outputs/inputs, and use a certified High Speed HDMI cable, then you should be able to pass DTS and video to your tv. If your Panasonic is that old (I'm not familiar with the model) that it can't pass DTS thru the optical output, then yeah, you may have to upgrade. Optical out on the tv would be nice. My tv reception is OTA only so I pass Dolby DTS 5.1 from my tv to my receiver via optical, turn off the speakers on the tv, and listen via my AVR. The opposite for BD and ATV2. I run High Speed HDMI to the AVR and then pass the video thru to the tv via HDMI. Audio is played thru the AVR, tv speakers off. I'm assuming that the Panasonic has a built-in DVD but the separate receiver throws me.