There are two ways to get surround sound from the Apple TV to a surround system.
1) HDMI will transmit both digital video and Audio
2) TOSlink (SPDIF or optical digital) cable will transmit digital audio only
Do you have a surround sound amp in your system or are you trying to run it to a pseudo surround sound on the TV? The Pioneer is a recorder/player and doesn't have inputs for HDMI Or TOSlink. You assumptions are correct.
I run mine via HDMI to my Denon Surround amp and then run HDMI to the TV. The Amp is setup to send the sound to the speakers and not to the TV (via HDMI). I could have put HDMI to the TV and TOSlink to the amp and this would have achieved the same thing.
If your TV will detect DTS or Dolby Digital encoding then the HDMI cable to the TV will be giving you the best ability of the TV to output surround sound.
If you don't have anything at all a sound bar is the best alternative or 5 speakers a subwoofer and a surround amp.
MY15 Discovery 4 SE SDV6
Past: 97 D1 Tdi, 03 D2a Td5, 08 Kimberley Kamper, 08 Defender 110 TDCi, 99 Defender 110 300Tdi[/SIZE]
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