what is best audio connection for dvd to receiver?

The digital outputs (optical/coax) are for sending the DTS/AC-3 surround code from the DVD's to the surround decoder in your HT receiver.

If you are playing regular music CD's the analog outputs are what you are using, unless you are using a separate audio DAC (digital to analog converter) like the MSB Link DAC, (and others, etc), in which case you would also use the digital outputs..

As far as optical vs coax; most people prefer coax; however, if you really want to know what works best for you, then you should really try it both ways yourself. The cable used can have a large effect on results..

I don't doubt anyone; but all the HT receivers I have been in contact with don't have a "2 channel mode" for the digital chip in the receiver. If yours does, I am kind of skeptical that a chip designed for dolby digital is going to be better for 2 channel than the DAC chip built into the DVD player.

The questioner wants the best performance. While you state your receiver's chip does 2 channel, is it better than the DAC in your DVD player?