how to configure hdmi with av

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how to configure hdmi with av

I currently use a sony str av receiver as video (component) and audio switch for digital cable box and dvd player. I believe the AV has an optical in/out. I use a harmony 880 remote to control it all. with ease.

I am considering upgrading tv to 1080p. And the only way it works is if the sammy hls5687w is the ONLY thing I have to buy... meaning, how would it work with my current AV systems?
Do I connect new cable HD box and upconverting DVD via HDMI to back of TV and connect audio out from TV to AV via optical? Does that work?
And this would mean I am essentially no longer using the SOny Receiever as an AV switch but simply as an audio receiver from what ever input (HD-Cable or DVD) is active on the TV, yes?
Then, aside from informing the Harmony remote of the new TV, I would also need to reconfigure the remote online to inform it that the AV setup os different and just a receiver and not as a switch. Is this correct? And is it possible to reprogram the Harmony remote by removing the STR Receiver as a Switch and re-entering it as a just a receiver?

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