I have a philips home theatre dvd,with digital out(coaxial),and a dish 522 dvr,with digital out(optical) no inputs that i can see. does this mean im out of luck for hooking up any digital audio since the two are different?
yeah, it wouldnt matter if the receiver had an input or not. you have to get the signal FROM the receiver TO the home theater/dvd.
As far as a digital signal, if your home theater doesnt have an optical input, then yes, you are out of luck there.
Just use the RCA's. If I had to guess I'd say since its a home theater/dvd all-in-one type unit, I doubt you will be able to hear a real difference in sound quality anyway.