Audio solutions for my setup

[Hellhog]

I've been researching around this site familiarizing myself with all this audio technology. It seems way more confusing and (depending on setup) expensive than video.

I'm looking into getting the Panasonic BD60 Blu-Ray player to complement my 19" Toshiba 720p LCD TV (19AV500U) and my Xbox 360.

For Audio I have Turtle Beach Ear Force X4 Wireless Surround Sound Headphones, the receiver itself has the capability to decode Dolby Pro Logic II. I will be using the Toslink Optical Cable for that. I also have Panasonic SA-AK320 Shelf Stereo System which has no decoding function. I will be using the Analog RCA Red and White Stereo Cables to input into its Aux Port in the Reciever.

My question is, what audio format do I need to set the BD60 for playing through the Headphones? What format do I need to set it in order to play through the Shelf Stereo System?

I've come to understand Dolby TrueHD and MA a little better and I believe the DB60 can decode those formats itself. For using the Stereo, could I run one of those formats to work on my stereo (or is that for specific surround sound systems)?

Edit: I apologize for any audio newbyness I have, still learning audio. Its a lot more complicated than video (at least to me)!

Edit #2: What I've read from a PDF copy of the BD60/80 user manual (If I've Read and understand correctly), is that I can run Analog Audio out to my Stereo Receiver at the highest quality (Master Audio or TrueHD) set for 2 channel. As for my Headphones, (using the Toslink) I would need it to bitstream and it will automatically downmix to a lower format (since toslink doesn't support certain formats) then the Headphone Receiver will automatically decode it at Pro Logic II (however I saw no information for Pro Logic II on the user manual). (Again, if I am mistaken, please excuse my newbyness).

Edit #3: My goal is to be able to listen to the Dolby Pro Logic II 5.1 channel Surround Sound that my Headphones support and Stereo Sound that my Speakers support.