sdcampbell, just fyi: you are incorrect in stating that ld's do not use dolby digital or other digital formats - it depends solely on the disc. many older ld's have an uncompressed pcm track as well as an analog-only track. and many newer ones *do* have DD and DTS tracks, along with a pcm and an analog track. they (the DD and DTS tracks) are indeed RF modulated and need to be demodulated in order for a receiver to recognize the signal, but that is because the commonly accepted technology changed for sending compressed digital data from rf modulated to using a digital cable with the popularization of dvd.
the standard analog tracks are not rf modulated, because they don't need to be. the go out via rca jacks like anything else. the pcm tracks as well would be decoded by the player's internal DAC and then sent out the rca's.