Use the players digital out to the denon 3803.
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I guess I did not understand his question, I thought he ment for movies because he said 7.1. For dvd audio you would use your analog 5.1 outs on the player. As far as the speaker hookup goes, try it all and see what sounds best. dipole or bipole may sound best at the sides with monopoles in the rear. If you have to use a y-splitter, then you will need to use the exact same speakers at sides and rear as you will only have volume control that will raise and lower both speakers at the same time on each side. In my system I use 5.1 setup for music with rear speakers behind and to the side.