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HELP! Need suggestions for home theater problem!

#1
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Okay, here's my problem. 

I bought a crappy panasonic home theater in a box (DVD/Receiver, Speaker, Sub) set several years back. 

I want to run 5.1 surround sound from my Blu-Ray, Satellite Receiver, and XBOX to the through the home theater system in a box.  Problem is, it only has 1 digital optical in plug.  I tried running all the systems with HDMI cables through my Panasonic Viera TV, and then using an optical cable from the TV to the home theater system, but I found out my TV will convert the sound to 2 channels.

Eventually, I want to purchase a real home theater system, but I dont want to blow alot of money on it right now.  I would like to start by buying a receiver, but most receivers I looked does not have an digital optical out plug and does not have a good way of transferring the digital sound to the home theater system in a box.

Does anyone have any suggestions on what I should do?  Your suggestion would be appreciated.  I also looked at getting a toslink optical switch, but my xbox does not have an optical cable.

Thanks!
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#2
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Quote:
but most receivers I looked does not have an digital optical out plug and does not have a good way of transferring the digital sound to the home theater system in a box. 

I'm not sure what you're trying to do.  If you get a receiver, you no longer need your HTiB.  And would you need a optical out on a receiver?
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#3
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Do you know if your current speakers can be used with a different receiver?  A few HTiBs have proprietary speaker connections.  If your HTiB has "regular" speaker connections, you can buy a new receiver and dump the "brains" of your HTiB and plug your speakers directly into your new receiver.
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#4
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Your goal is to get a new receiver that will act as a hub for all of your sources HDMI out from Blu-Ray, Satellite Receiver, and XBOX . to HDMI inputs on your receiver.  Then connect your Receiver HDMI out to the HDMI input on your TV.  This will give you the best possible video and audio from your sources to your receiver and will render your TV as nothing more than a monitor.

You might be able to use your existing speakers but from the way you describe then (crappy panasonic home theater in a box ) you are probably going to need new speakers too.
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