Based on the feedback in
my recent thread I ended up getting a Sony STR-DG720 to replace my HTIB. I kept the speakers from it though except for a power sub I had to get. I now have all my components, PS3, 360, and Apple TV connected via HDMI. Direct TV is hooked to the TV via HDMI and optical to the receiver.
Wow, what a difference! I tested before even doing the auto calibration with Band of Brothers, and love it! Even high definition TV programs sound better over optical than my HTIB.
Thanks for all the suggestions. I got the Sony for a steal and now have to watch my Blu Ray collection all over again!