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7.1 Channel Surround Sound on a Crosshair V Formula -Z

ThunderAI
Level 7
Greetings.

I have a Crosshair V Formula-Z with SupremeFX III. The back audio jacks are connected to a Razer Riamat 7.1 (Here which works well for when I want to close out the world; however, I would like to build a little more entertainment into the system for movies, etc. The family upgraded to a new home theater system which leaves me with an old 7.1 channel system I'd like to connect to the computer. The old system is a Panasonic SC-BT200 with a number of different connection options available to use. The back panel looks like this.

In the past I would run the optical output from the mobo to the optical input of the receiver; however, I'm curious if there is a better way to do this and maintain sound quality? The HDMI output from the receiver would then connect to the monitor (which is really a TV anyway).

For example;

- Is the optical output at least 7.1 or limited somehow?
- Is there a better way to connect them?

Thanks.
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