Which is better- Decode Audio in Player or Receiver?

[bootman]

It is a little more complicated than that.
If you have a relatively low end receiver then I would agree with "they are both the same".
However, if you have a more upscale receiver or a high end processor, then things might be different.
Can you apply THX EQ to your PCM stream?
Can you apply 7.1 processing to a PCM 5.1 stream?
Can you add other post processing to your PCM stream?

If your answer is "no" to any of the above (or anything else your equipment can do to bitstream but not PCM) then the answer may not be an automatic "they are both the same".

We can also get into the jitter debate when it comes to bitstream vs PCM, but most here don't really have the level of gear needed to properly judge the differences for themselves. (myself included)