I just read this thread for the first time this morning. It seems Mid-Fi, the OP, is confused over a number of things. One is whether he should choose a multi-channel AVR or a 2-channel stereo integrated amp, such as the Yamaha A-S801, for reasons of better sound quality. The answer is simple – there is no advantage in sound quality that a 2-channel integrated amp offers over an AVR. If someone wants to use only two speakers, an AVR can do this no better or worse than a 2-channel only system.
Mid-Fi is also confused about how to wire up a variety of different audio and video sources, a TV, and a sound system. This is a more complex question and has been answered already by lovinthehd (above). Because this question has been asked by others before, and will probably be asked again in the future, I thought I would try to restate the answer, in more general terms.
Right now I'm feeding the PS3 into the TV thru HDMI and then Optical out from the TV to the receiver.
Mid-Fi is using his TV as the central hub of his system, with input from his PS3, a source of both audio & video (AV). He wants to send audio out from the TV to the receiver. If he gets the Yamaha A-S801 (a 2-channel integrated amp) he must send sound to it by an optical digital audio connection.
As lovinthehd pointed out (
post #12, above),HDMI connections are a better choice than optical.
What I'd like to add is that the OP should use an AV receiver (AVR) as the central hub instead of the TV, as he does now. He can add a PS3 or any other AV source, such as a Blu-ray player or a streaming device directly to the AVR. HDMI connections (which combine audio and video digital signals) are presently the standard way to connect all AV devices. Video signals can be sent from the AVR to the TV by HDMI cable. In that sense, the AVR is the central hub for his system, and the TV is used as a video display monitor, as the speakers are audio monitors. (If needed, he can also connect any 2-channel audio only source directly to the AVR by a variety of ways, digital or analog, depending on the receiver.)
The key to all this is to use HDMI connections, as much as possible. It will be much easier to wire his system this way, and it will be much easier to add AV sources or monitors in the future. I understand if a reader might have trouble understanding the advantages of doing things this way, but we do recommend doing it. In the long run, you'll thank us.
I want to return to the OP's original question about using the Yamaha 2-channel integrated amp instead of an HDMI capable AVR. I hope this explanation makes it clear why a 2-channel amp requires more complex wiring gymnastics, and should be avoided, if a TV and an AV source such as a PS3 is involved.
