Yes and no
Dolby Digital, DTS are sent via Toslink/Optical, Digital Coax, Multi Channel out from the DVD to receiver, or HDMI. HDMI 1.3 is the next phase of HDMI and not a necessary evil just yet.
HDMI has it's issues with sync and is "somewhat" unstable from time to time. Depending on which one of us you get a response from.
So, if you have Optical, or Multi Channel out from the source, and in at the receiver, you'll be ok.