Help setting up my Sony BDV-E500W system. (1 Viewer)

I have Sony's 500W system and I want to connect my PS3 and Xbox 360 to the receiver. The problem is that the receiver only has one optical input. Now, I've found a couple of solutions that may work. I've read about an optical selector switch that lets you have multiple devices plugged into one optical input. I've also read about an optical to digital coaxial converter. What I'm wondering is if either of those options are feasible and if they'll work well. I would appreciate any suggestions.

I would go with the digital coaxial converter like this one from cables to go http://www.cablestogo.com/product.asp?cat_id=3103&sku=40019&relatedItem=true# this is a better option then the selector because you will have no remote control of the selector.