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Just bought Home Theater System, need help connecting everything.
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The theater system has 1 HDMI port, 1 component, one composite, one SAT/CABLE audio, and one coaxial
The TV has 3 HDMI, 2 component, a composite, a DVI, and a coaxial.
What I would do is use HDMI from the 360 to the system, and then HDMI from the system to your TV. That's probably the most important. If you have HDTV service and want to enjoy 5.1 audio on the channels that have it you may need to buy an optical cable or digital COAX to run from the TV to the system, but I'd test it with just the HDMI first to see if it works.
The Wii doesn't do anything other than Dolby ProLogic, but I believe the PS2 has optical out so you can use your judgement there.
One thing you may be able to do is hook your 360 directly to your TV with HDMI and then optical audio to the receiver, so you are sending video to the TV and audio to the receiver.
Ah, sorry.
Looking at it some more, I'm not sure if this thing will actually do any decoding at all. I was mistaken and thought there was a HDMI input but there doesn't seem to be, though I may've missed it. In that case, this may not get you anything other than surround output from the DVD player.