There are several key things to consider on this. both your dvd & surround sound system need to support HDMI. Are you aware that Digital Content Protection, LLC is providing High-bandwidth Digital Content Protection (HDCP) for HDMI. HDMI has the support of major motion picture producers and system operators DirecTV & EchoStar. What this means is if you hook up the HDMI to your satellite receiver copy protection will not allow you to record anything. HDMI systems will automatically convert a picture into its most appropriate format and supports standard, enhanced, or high-definition video. HDMI supports multiple audio formats and ease of use HDMI combines uncompressed digital video and audio into a single cable, eliminating the cost, complexity and confusion of multiple cables currently used in A/V systems. HDMI cables have 5Gbps worth of bandwidth as well as up to eight channels of 24-bit high quality audio. This means there is no conversion of the signal (digital-to-analog).
On the other hand, Analog component video is known to be a more robust signal than HDMI over distance. When a digital signal is run through a cable, the edges of the bits round off, and the rounding increases with distance. At some point, the data becomes unrecoverable and with no error correction available, there is no way to restore the lost information. DVI and HDMI connections are subject to the "digital cliff". Up to a certain length the cable will perform just fine, but the longer it gets the more "sparkly" the picture will become. Some people insist HDMI is better, others say they don't see a difference. In the end it comes down to what YOU like.
