Here's my options as I see them:

Option 1- DTC100 upstairs in the equipment rack, connected to the Marantz amp for audio via Toslink. Run a cable to the Mitsubishi dowstairs.

Option 2- DTC100 downstairs with the Mitsubishi, connected directly to the TV via VGA to 5 RCA breakout cable. The problem is how to get the AC3 audio up to the receiver upstairs.

Option 3- Move the Marantz receiver and DVD downstairs as well with the DTC100 and Mitsubishi. The problem is that I'd have to re-run speaker wires through the walls again for the main theatre, and it defeats the whole idea of centrally located equipment.

Option 4- (In a perfect world)Find some way of getting AC3 to the Marantz receiver upstairs. Is there a Toslink to RF converter out there somewhere?