Brian,
To simplify things in your case, if you are using HDMI then use that for audio and video. Toslink, S/PDIF optical are redundant and you don't need them. Use HDMI and you are good. Save yourself some $$$ buy HDMI cables from monoprice.com and get some great deals on gear at the audioholics.com store and www.accessories4less.com. You'll be able to make your budget that way and be happy with the results. For your stated goals, go for an Onkyo. Lots of bang for the buck and built well too. You can get great deals on Onkyo gear at accesories4less.
Theo
To simplify things in your case, if you are using HDMI then use that for audio and video. Toslink, S/PDIF optical are redundant and you don't need them. Use HDMI and you are good. Save yourself some $$$ buy HDMI cables from monoprice.com and get some great deals on gear at the audioholics.com store and www.accessories4less.com. You'll be able to make your budget that way and be happy with the results. For your stated goals, go for an Onkyo. Lots of bang for the buck and built well too. You can get great deals on Onkyo gear at accesories4less.
Theo