Are an existing optical output DTS Audio Receiver, upconverting DVD Player, and a 720 LCD TV Compatible?
Answers: You can use HDMI for video from upconverting DVD player to TV, run an optical (or digital coax) cable for surround audio (DTS, DD) from DVD player to beneficiary (You may have to specify this surrounded by a DVD menu).
So you don't need HDMI on beneficiary (although you will not have source switching within one place ... you will need to turn to DVD on addressee to get nouns and to correct input on TV to get picture) and you still bring back DTS and DD surround.
Similarly you can output surround audio from the new TV over optical or digital coax to the addressee. Note that not all TV is 5.1 ... profusely is only stereo.
Note that an upconverting DVD player won't provide any benefit unless you own an HDTV ... and that requires HD programming to benefit from TV (Also note that various HDTVs don't look as good beside SDTV programming as the TV that got replaced). You can use an antenna for HD if you live conceivably close -- 30-75 miles, depending on antenna -- to the station(s) although you will eventually want HD cable or satellite unless you are in a central metropolitan area.
In language of HDMI cables check out the article at the intertwine ... and buy budget cables.
You don't want HDMI to pass multi-channel audio.
When you grasp your TV, connect its digital audio output to the digital input of your receiver and you will be adjectives set.
So all your equipment will work purely fine.
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