Sorry for the delayed response here.  MZ nearly covered your answer,
but now that I'm researching a new home theater for myself I know the
specific answer to your question.

The Lifestyle 35 does support Dolby Digital as well as DTS (another
surround sound format that most of us haven't heard of but is very
well respected) so you should definitely use the optical digital out
to get not only clearer audio in general, but surround sound if it's
encoded in the show.

> Neither the Lifestyle 35 nor my TV support HDMI, so I'm using
component video RCA 
> cables for the video signal. My specific question was whether, if an
HD broadcast is Dolby 
> Digital, will the (presumably different) surround-sound
encoding/decoding supported by 
> the Lifestyle 35 be the audible result of sending an optical audio
out signal from the TiVo 
> HD to the Bose control box?
> 
> Thanks so much for your always informative answers!
> 
> Jim Robertson

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