If your player internally decodes the advanced codes, you can run the HDMI for video direct to the display and the decoded 5.1 LPCM stream via digital (coax or toslink) to your processor.
You are right. I was getting confused with 2 channel PCM which does go over the optical or coax. I run two channel HT so I just use coax to transmit decoded PCM from my player to my Wadia although to hear DTS HD MA I'll have to upgrade my player at some point.
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