No HDMI input in Receiver, What now? Update: Fixed

[jgaepi]

I know that similar questions have been answered in reference to the Sony BDP-S1 but I am really frustrated with my problem. I may have some money to throw around but not Ft. Knox type money. I own the Onkyo 870 Home Theater in a Box system. Good system but no HDMI input. I just purchased the multi-region KLV-V40A10 television with only one HDMI input. I also just purchased the BDP-S1 with brilliant picture but no audio solution.

If I use HDMI into the TV, then I only get TV sound. If I go Component, I am losing HDMI quality. Sony stuck the optical input there for a dirty joke?

Has anyone figured out a way to solve my type of predicament? Perfect world, HDMI into TV, program no sound via HDMI into TV. Running optical cable into HTIB system. Woa La!!! No dice right now.

If my only solution is Component, am I missing out? What brand component do you recommend? And how would you do it to maximize my current purchases?

Thanks much!!!