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HDMI is currently the best way to transmit audio and video in a Home Theater. However, be aware that it can have difficulties in long-distance runs.

HDMI carries digital video from 480i to 1080p. It can carry 24Hz video, the original framerate of cinema material. (For the technically inclined, this means you can avoid 3:2 pulldown and telecine judder.)

Since HDMI is transmitted digitally, signal degradation generally does not occur in short cables. You will not get a fuzzy or dim picture from HDMI. However, long-distance HDMI runs may have "sparkles" or lose the signal entirely.

HDMI can carry high-bandwidth digital audio, including all forms of audio currently used on DVD, Blu-ray, and HD-DVD. The most demanding form is 7.1 multi-channel PCM.

DVI video is identical to HDMI video, but does not include the mandatory HDCP encryption. For this reason, some equipment may not allow HD material through DVI ports. DVI connections do not carry audio.

Component video also carries video from 480i to 1080p, but due to copy protection paranoia, most upconverting DVD players will only output up to 480p over component. Blu-ray and HD-DVD will only output up to 1080i over component. Only new video game consoles use 1080p over component.

Component video uses analog signals, which means image quality may vary on different cabling and equipment. However, analog signals are more likely to succeed on long-distance runs. Thus, component video is still very popular for some scenarios.

Component video is usually coupled with SPDIF digital audio or stereo analog audio.

These older standards transmit 480i video in analog. While this is fine for older CRT televisions, such signals will appear blurry on large HDTVs.

Composite video is usually coupled with mono or stereo analog audio.

These means of transmitting digital audio are most commonly used for Dolby Digital 5.1, DTS 5.1, and PCM stereo. While DD and DTS can sound excellent, only HDMI has the bandwidth to carry newer HD audio signals, such as multi-channel PCM.

Analog audio is generally transmitted in mono (single white RCA), stereo (white and red RCA), or multi-channel. Surround sound can be extracted from stereo analog audio, but the result is not as clean as discretely-transmitted surround sound.

Multi-channel analog audio can carry the same fidelity as multi-channel digital PCM, but analog noise and additional digital/analog conversions may occur.

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