sony 1080 multi channel decoding

am I right in thinking that generally the best bet for connecting dvd audio to receiver is via a single digital coax cable? does this mean the s****y (although obviously less important!) blue *multi channel decoding* light on the 1080 won't spring into life? or am I missing a connection/setting somewhere?

Cheers again,
Iain

 

I've connected my 1080 to my DVD using a Coax.

Mine light only comes on with DPL 5.1 and not DTS, DPLII etc

I think in the manual somewhere it explains this

 

The blue light should light up for DTS, but not for PL2 as that is not a digital signal, therefore not true multi-channel. I beleive DVD Audio is like SACD in that it cant be transmitted through a digital connection, only via six phonos into the "multichannel input" part of the amp (there are 2 multichannel inputs on the 1080), which again means you wont get the blue light shining!