When it comes to Home Theater systems with DVD players built into them, this tends to be the number one complaint. Although you don’t have an optical input on the unit, you do have the analog audio inputs (Right , White ) which you can connect the XBOX 360 to. It will not produce the 5.1 surround sound that the system is capable of, but it should have a surround mode for gaming, or general purpose that will make the gaming experience more complete. If you want to enhance the sound even more check out upgrading the Audio/Video cables to Monster Game Cables from Monster Cable, they will maximize your picture and sound to its best capabilities. Also if you want more of the surround experience use the Level settings on the system to raise the level of the Surround Speakers so that there is more active sound from behind you. If it really gets down to you wanting the optical input, you can switch out the receiver, and more than likely keep the existing speakers, or switch out the speakers as well since you have the wires run through the wall. But if you do that you will either end up using the XBOX360 as your DVD player, or purchase a DVD player as well. There are some really good HTIBs out there now for under $500, one in particular from Sony, comes with an up-converting DVD player, and HDMI connectivity on the receiver for future use as well.
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