I have an old pioneer vsx-305 surround sound that I want hooked up to my magnavox tv. But I can't figure it out. My tv only has a digital audio out(coaxial) and my surround sound uses Rca plugs.
You will need a DAC to convert the optical digital audio to analog http/www.parts-express.com/parts-express-dac-digital-to-analog-converter-(51-compatible)--180-999
and yes a receiver with a digital input will give you better surround sound. If a new one isn't affordable you should be able to find a used receiver without HDMI but with optical audio input that will be pretty cheap ($50 to $100).
You will need a DAC to convert the optical digital audio to analog http/www.parts-express.com/parts-express-dac-digital-to-analog-converter-(51-compatible)--180-999
and yes a receiver with a digital input will give you better surround sound. If a new one isn't affordable you should be able to find a used receiver without HDMI but with optical audio input that will be pretty cheap ($50 to $100).