Sky + HD Optical Out to Supernait

Supernait does not have an HDMI input

It has digital input via one or other of optical or cable, or regular 2 channel analogue

Sky+HD has only digital optical or 2ch analogue,  so if you want the best,  its optical or optical,  no other choice. 

Your TV might have the same connection options as the Sky box,  but possibly might also have a digital cable connection.  

I can have mine connected to the TV optical output,  that way I can watch & listen to whatever is on the TV, whereas if I had it connected to the Sky box I could not watch & listen to some terrestrial stuff that Sky do not transmit 

You need to ensure Sky box is outputing PCM and not Dolby as Supernait cannot decode Dolby

Thanks for the reply - thats really helpful, I've hooked it up know and blasted a couple of movies through it and it seems crisper at first listening. Now the same question for my PS3, hence the HDMI confusion. I'll start a separate thread for this.