I broke down this weekend and bought a Blu-ray player. It's a Sony BDP-S350.
I also switched all my cabling for my TV/Amp/PC and the new Blu-ray player to HDMI cables.
HDMI cables can carry both digital sound and video in a single cable, so it can clean up a big mess.
My plan was to route everything to the Amp (Receiver) and then a single cable would connect the Amp to the TV. At least I thought I was going to do that.
Blu-ray to Amp and Amp to TV went fine. All worked with HDMI cables immediately.
PC to Amp didn't. I was connecting from my video card, a GeForce GTX 260. It has DVI connectors, but it came with adaptors from DVI to HDMI.
With that HDMI connection from the PC to the Amp, I couldn't get digital optical audio to work. So I tried routing audio separately by using an optical cable. The Amp wouldn't recognize it. It might be that the Amp saw an HDMI connection without audio and wasn't programmed to look anywhere else.
I ended up routing an optical cable for digital to the amp and running the HDMI cable from the PC directly to the TV. So now, the TV has two HDMI inputs, but it works.
All equipment involved was Sony and all less than 6 months old.
Maybe this will help someone else with the same problem.