[bobh33]

Thanks everyone! Here are the initial settings for the matching DVD player DV-SP404:

1) Digital Out: On
2) Dolby Digital Out: Dolby Digital
3) DTS Out: DTS
4) 96 kHz PCM Out: 96kHZ > 48 kHz (It won't let me change to "96kHZ")???
5) MPEG Out: MPEG > PCM (It won't let me change to "MPEG")???
6) HDMI Out: Auto

Are those better options that #4 & #5 won't let me do???

Or how about running optical from DVD to AVR for audio & HDMI from DVD to TV for video?? What I am thinking is that if the AVR is a pass thru HDMI as in DVD to TV, than doesn't the audio also pass thru to the TV and then come back via optical which would "dilute" the audio quality??