Hello
You should certainly connect your DVD player to the receiver using a 75ohm coax cable rather than the optical but ensure that you purchase a good quality 75ohm lead. Coax cables sound 100 times better than optical - I promise you! As to where the signal should be decoded, well I would opt for the receiver which will almost deinitely use a superior chip set than that found in your DVD player. DVD players with onboard decoding are for beginners only to be frank. The very best home cinema and hi fi systems are built around the seperates ethos - and for good reason. So connect your DVD with a coax and let your receiver do the decoding and enjoy...

Justin Pledger
Dolby Laboratories