I've got the STR-DE897S and it definitely has optical input for DVD. There are four optical inputs labeled DVD, TV/SAT, MD/DAT and SACD/CD (which makes a lot of sense when you can't pass the SACD signal over optical
) on the back and an optical input on the front for VIDEO3. It says you can assign the digital inputs, but in reality you can only assign them to VIDEO1, VIDEO2 or the input it is labeled as. There are also two digital coax inputs for DVD and TV/SAT.
Love the receiver even though most audiophiles on the internet say the Sony isn't very good. I love it, and I loved the STR-DE1075 that this replaced. The only problem with the STR-DE1075 was it didn't have any component inputs/outputs or Dolby ProLogic II support. When I got my new 57" Sony CRT RPTV I had to have the component inputs on the receiver to handle all my components.
Should also note, I'm currently using coax for the DVD player, but optical does work; I tried it myself, but due to connections with Xbox and PS2 I needed the extra input.
