The 565 has 1 digital coax, 1 digital optical and one analog input. If you have a minimalist system it can work as a stand alone uniit. If you have more sources, then you also need a 562V. You plug all your sources into this box, then 1 digital to the 565 and 1 analog. The 562V switches and routs all of your sources to the 565 for processing. The 565 was upgradeable all the way to Dolby Digital and dts 7.1 I believe. Set-up programming is all done through a difficult menu system from the front panel switches. The 565 is a great unit and sounds better than the 561. The 561 was the first one box solution featuring several inputs. It also has computer based set-up interface that is much easier to use. I am not sure how far the upgrade path this unit will go since it is still a current production model. The 565 will not be upgradable any further. The 568 is the replacement for the 565 with more inputs and the computer interface. Let me know if you need any more details.
