You get what you pay for, technically you might not even notice the difference when switching to an optical input especially on a cheap receiver and with Panasonic speakers. Save up a little more and buy a good receiver, like an Onkyo, then at least you have a component you can build off of later on. I switched to an Onkyo with Infinity speakers and sub from a Sony with Fisher (15" woofers) speakers and that was a huge difference then when I hooked up my Xbox using an optical cable that was another huge difference, the rear channel sounds as smooth and clear as the front.