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If I might expand on what Scott has said:
In Home Theatre, also sometimes refered to as pre/pro, where the pre is the preamp (which has the inputs/outputs, switches between the sources, etc) and pro is the signal processor section which does any of the conversion/decoding, for example Dolby Digital, dts, etc etc. The outputs go to the external amplifier(s) as has been posted above.
A receiver is the all-in-one box.
"One of the problems of taking things apart and seeing how they work--supposing you're trying to find out how a cat works--you take that cat apart to see how it works, what you've got in your hands is a non-working cat." -- Douglas Adams
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