Optical connections are audio only. All audio goes straight into my dolby digital receiver, then to speakers. I switch audio source at the receiver. I run all S-video outputs from a SVHS VCR, DVD, and DSS into a Sima SVS-4 A/V switcher. I run one S-video output from the Sima into the one S-video input of my TV. The Sima autodetects the active video source and sends it on to the TV. Run all video as directly as possible to your TV. Use S-video cables if you can. There is a noticable difference.

The last great link in this home theater setup is a remote control with macro capability. I use a pronto ($300ish), but I've set up a ONE4ALL cinema7 remote ($20ish) to do the same thing.

dave