Originally Posted by Phusius
Optical is not really digital, it just claims it is. Which is why I abandoned my pursuit of a 5.1 system.
You have to have a full on HDMI signal to get full digital sound, private message Bumblebee, he is the audio expert here.
Optical is digital.
To the OP. Buy the receiver and speakers separately.
The receiver, you are looking for numerous optical, coaxial and HDMI outputs / inputs. Support for HD standards i.e. Dolby Digital True HD and DTS Masters etc.
For speakers, you want wooden bookshelf and/or floor standing speakers.
I like my bookshelves to have a low frequencies of <50Hz and floor standings to have <35-40Hz but that is a personal preference of mine.