What about with a new blu-ray player? I just picked up a nice new panasonic BD85 and according to it's manual if i want the best HD sound options from blu-ray I should be using the analog outputs, unless I have a processor which has hdmi inputs. I have it hooked up that way and it sounds great - still not sure where the toggle switch should be though. I also don't yet have side speakers, just fronts, center, and sub.
Thanks.
Mike