The answer is Yes, you can do this.

I'm currently doing it myself; I have a Sony DVD player plugged into my Yamaha receiver, plus my Sony Playstation2 that is plugged into my receiver. I just bought a brand new Samsung TV, which has multiple video hookups.

What I've done is run an optical connection to my Yamaha receiver from the PS2 so that I get surround sound when playing games and run JUST the video feed directly into the component video inputs on the TV (the PS2 CAN act as a DVD player for me; I just never use it in that capacity since I don't have the remote control adapter for it...I've already got a DVD player; why waste the extra funds on something I don't need?).

Then, on my Sony DVD player, I've run JUST the Coaxial audio into the receiver and an S-Video connection to the TV.

My particular receiver does have an auto detect function, so it will detect whatever source is outputting sound for the DVD connector (My particular Yamaha model has only 2 optical inputs; 1 is for the Dish Network box, the other is for my DVD player, and they're both in use). It will only pick up the optical if that's actively putting out source, and the coaxial is secondary. So, it CAN be done...But, like some of the previous posts, I do NOT recommend having both DVD players on at the same time!!!

But, just so you know, what you're asking about, it CAN be done...As to whether it will work with your specific equipment, that I'm not sure...Check your receiver to see if it will auto detect which source the audio is coming in on. Otherwise, the only other thing I can recommend would be something like a selector box that you may see for game systems, where you can select the different sources. Prime example, and something that might fit your needs quite well: The Pelican PL-957 Pro System Selector.

[Link: pelicanperformance.com]

This thing's got 3 optical inputs, 3 component inputs, 3 Ethernet inputs, 8 RCA/S-Video inputs...The only downside I've seen with it is that it doesn't have IR control to select between the different devices. BUT, it's a way to help expand if your receiver only has 1 or two inputs of what you need. And, the price tag on it's a LITTLE pricey...bestbuy.com has it, and it runs about $100. BUT, if you want multiple components and your receiver's a little shy of meeting that, this might be your solution. (it's also perfect for those people still in the Dark Ages who only have RF connections on the back of their TV; the PL-957 also acts as an RF switch)