Theo, I did hook the toslink from the tv to the iDecco and it sounds great.
Tom, I do not have a surround sound processor.
I am wondering if the DAC in my older Panasonic tv was just alot better than the DAC in this Gefen converter. In my old setup, comparing optical out of the tv into the iDecco and analog audio out into the iDecco, there was not a huge difference. With this new Gefen converter, there is a huge difference (that is, noticeably poorer sound quality with the converter).
Does anyone know of any other converters that may be of higher quality than the Gefen?