Coaxial or Optical


I am just getting my new HT system together. It includes an Onkyo 676 (old Adcom seperates for Stereo), Pioneer Elite DV-37, and NHT 2.3A's and matching center and surrounds. Should I use coaxial or optical to connect the DVD to the receiver? Does it make a difference? How much do I need to spend that will make a difference? I am using an 8 year old Sony 32" XBR. For video, I only have S video, can I connect to the receiver first and then to the TV? Does this degrade the signal. I should have it up tomorrow. Any input will be really appreciated.
pablo1
O.K., Now for a more technical understanding of why there is not a concensous af toslink vs. coaxial connections. Although most of the time the coax connect sounds better, sometimes the toslink will be the better connect. How can this be? Because each manufacturer is using a different input reciever chipset, which is the real determining factor to which connection will sound better. (The input reciever is the chipset that "recieves" the initial digital data, and then passes this data to the D/A and other processing chipsets ). If the input reciever has a high immunity to jitter, then it usually sounds best with an optical input. Unfortunately, these type of input recievers have only been available in the last 18 months, and are most likely on a processing unit that employs 24bit sigma delta dacs. Otherwise with the other types of input reciever chipsets, the coax sounds much better. Don't even try to ask your manufacturer about his digital designer's input chipset reciever choice. He will probably mislead you, since many are totaly oblivious of the above aformentioned information. As a former sales representative of these types of chipsets myself, many processer and reciever manufacturers "swap out" and change their receiver chipsets, during the production cycle for both cost and supply considerations. They can make this change because there are many pin for pin compatible digital chipsets offered by competing digital chipset manufacturers. As usual, the best way to determine which connection is better is to do an A/B comparison between connection types.
I just did an A/B with Monster Datalink 100 and Monster Lightspeed 100 cables (both 1M) with a Toshiba DVD to a Denon AVR-5800. Other than a slight drop in overall volume, they sounded identical. Hope this helps, Gerry