Originally Posted by penlandc
What if I went from Tivo > hdmi > TV > optical from TV > Bly-ray....
Other than that...what else will kill the lag
That will still result in 2 channel stereo sound leaving the TiVo. Once something gets down-converted to 2 channel stereo, you can't up-convert it to true Dolby Digital. The best you can do is apply Pro Logic processing. (Which may be fine for your purposes... it's still "surround sound", just not discrete.)
I'm not aware of anything else you can do. I experience the same thing with my AVR. It only cuts out for about 1 second for me.