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Damon, You don't want to run your HDMI sources through the TV, then out via optical to the surround sound system. Virtually all TVs downmix audio from external sources to simple stereo before being output, so you would lose all discrete 5.1 surround data. Also, as you suggested, passing...

I agree with Al that for a bit more $ you can get a lot more system with the Onkyo he listed. If there's any way you can swing it you should. That being said, of the two you listed, I would go with the LG simply because it has the HDMI input (plus two digital audio inputs), so you can add...