I only have answers for 2)
The digital audio stream that goes to Coax/Optical is standard Dolby Digital or DTS. Using a DVI+Coax-Audio--> HDMI adapter will not get you Dolby TrueHD or DTS-HD Master.
The digital audio stream that goes to Coax/Optical is standard Dolby Digital or DTS. Using a DVI+Coax-Audio--> HDMI adapter will not get you Dolby TrueHD or DTS-HD Master.