I have a Yamaha HRR-5760 receiver and a Samsung BP-1500 blue ray. I have a optical cable running from the receiver to the blue ray and a HDMI cable running from the blue-ray to the TV. Should I have to blue-ray set at Bitstream (re-encode) to get the most out of 5.1 and 7.1 encoding?
form to your receiver to let it handle decoding, etc (its not re-encoding... its actually touching the signal less and letting your receiver do the heavy lifting). New uncompressed Blu-ray ray codecs such as DTS-HD and Dolby True HD can not however be bitstreamed via optical connections (and even if they could your receiver does not know how to decode them). That would require bitstreaming via HDMI to a new receiver capable of decoding the signal.
If PCM and DD-EX are the codecs you hope to get out of your receiver, however, I believe bitsreaming via optical will work fine.
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