OK: I'm looking at one right now - it has an optical output like a DVD player does. It says "SP/DIF" in the manual and says "To watch a program with a Dolby Digital soundtrack, connect the optical SP/DIF output on the receiver to the optical SP/DIF input of the external Dolby Digital product such as TV, amplifier, etc."
NOW whether or not this receiver will process
AC3 (which is 5.1 right?) or simply Dolby Digital 2-channel I don't know. I guess I could hook up one up to my motorized dish and my Denon DD receiver and try it. I'll report back with my findings. :?
kat