Need help for htpc hd video & audio

You can getter better PQ with HDMI as it will be pure digital without conversion.
Cable/converter is available locally/online from MX(MDR electronics).
 
@nd Q- many have reported that AVR has preamp which can perform better than getting 5.1out of PC.
I can say yes as I have tried both options.I get good sound from spdf out of D2X.
Sound from 5.1 out is good,but I miss few settings on AVR as it is played direct.
 
For excellent sound that won't break the bank, the 5 Star Award Winning Wharfedale Diamond 12.1 Bookshelf Speakers is the one to consider!
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