I would exchange the digital box for one with hdmi out. then I would run an hdmi cable from the digital box to the home theater and one hdmi cable from the home theater to the tv. That should be all the cables you need. No need for optical or component and this should give you the best user experiences and picture/sound.
I've had a 3250HD for 4 years now and have a constant issue with the On Demand menus not showing any text. They do show the small video previews with sound though. There can also be a lot of video break up. I can rememdy the situation by re-booting (unpluging) the unit. It is fairly frequent and really annoying. It also doesn't have HDMI out ... arghh!
Is this common, or do I have an outdated or faulty unit? Will Rogers replace it free of charge?
Very common, menus are blank, box requires constant reboots and the lag time between channels is ridiculous especially when you are going past an Ondemand channel. The amount of pixilation in the HD service is just annoying if you are watching on a screen that is more 80 inches. Your picture is only as good as the source. This source needs a lot of work.