Funny you should mention that...I had that problem a while back. I always had trouble playing this one Beck CD. It would never play. I was using an Onkyo TX-SR602. It would play in my car, on my computer and everywhere else, just not on my home system. I then upgraded to a Marantz SR8400, which does HDCD decoding and for s*&%$ and giggles, put the cd in again...suddenly it played. And I noticed it did something different to my receiver...as opposed to all the other cd's I had played through it, suddenly the red "HDCD" light was lit up on the receiver face. I had no idea that Beck cd was an HDCD. Having seen that, I've got to believe that if your receiver does the decoding, you can play them...it worked for me.
Back to the issue at hand. So I guess what I'm hearing is that, yes, I can hook my optical cable as well as the the multi-channel outputs up. Just to make sure I understand this, should I designate the inputs for different devices. That is, for movies, should I assign the "optical in" for my DVD input, and then assign say the CD input for multi-in? Just want to make sure I do this right. My current DVD player doesn't have multi-out and I'm interested in getting a player that does so (probably a Denon 2910 like mentioned earlier) as i'm getting interested in DVD-A and SACD discs.