The idea situation is to have a reciever that will decode the DTS HD and Dolby True HD formats with the signal being transferred via HDMI.
The next best option is to have the blu-ray player decode the signal and sent it via 6 plus RCA cables to the receiver. This requires a lot of outputs on the blu-ray player and a lot of inputs on the receiver.
The DTS HD and Dolby True HD are called lossless because they are effectively not compressed. There is some type of compression done but when decoded it is fully restored.
The toslink can only carry two channels of uncompressed sound (i.e. Redbook equivalent) so if you use that for multi-channel movies you'll only get the compressed formats that could be compared to MP3.
Bottom line, huge difference. I had my blu-ray player setup wrong one time and my wife made me stop the movie to get it fixed since the bass stinked, yes stinked, when not playing the lossless format.
The next best option is to have the blu-ray player decode the signal and sent it via 6 plus RCA cables to the receiver. This requires a lot of outputs on the blu-ray player and a lot of inputs on the receiver.
The DTS HD and Dolby True HD are called lossless because they are effectively not compressed. There is some type of compression done but when decoded it is fully restored.
The toslink can only carry two channels of uncompressed sound (i.e. Redbook equivalent) so if you use that for multi-channel movies you'll only get the compressed formats that could be compared to MP3.
Bottom line, huge difference. I had my blu-ray player setup wrong one time and my wife made me stop the movie to get it fixed since the bass stinked, yes stinked, when not playing the lossless format.