I have a Sony dav-dz860w home theatre system and a Sony bravia kdl-40ex403 tv.  Unfortunately, the integrated DVD player on the dav-dz860w has packed in.  I've now got a Sony bdp-s480 bluray player to replace the now defunct integrated DVD player.  I'm basically wondering what the optimum set up is to get the best from the bluray via the home theatre system.

The tv has 4 hdmi connections and an optical connection amongst others.

The home theatre system only has one hdmi out connection, an optical in connection, and a digital coaxial in connection.

The bluray player has a hdmi out and a digital coaxial out connection.

What is the best way to connect the equipment up in order to get the best out of the bluray connected to the home theatre system?

Furthermore, i'm concerned that I may not be able to achieve true 5.1 and dts using the bluray connected to the home theatre as it seemed as though that could only be achieved through the integrated DVD player when it was working.  Are my concerns justified? 

Any help would be much appreciated!  I've tried to consult the Sony connections site but it assumes more than one hdmi connection on your home theatre system.