digital or hdmi for sound

[zork]

help!!
what is the best to use for sound

1.digital from hd pvr and ps3 to my rotel rsp 1069 ,was always like that ,my processor picks up what is being processed for example dts ,dolby digital

2.hdmi cable from ps3 and hd pvr to rsp 1069,my processor then gives multi channel on screen for ps3 and for pvr dolby digital(preset to mix)

the sound sounds better in my opinion when using hdmi cable
I am just scared that it is not the best option ?

please don't crucify me if it is a stupid question,any advice would be appreciated

 

[tmavf]

 

[user 1447]

 

[anarki]

 

[tmavf]