Audio quality on connecting my WD live to HTIB

I am planning to purchase a Philips HTIB and before making a purchase I wanted to ensure that I make a best use of my audio ouyput from WD Live to Philips 5.1 home theatre

I checked the ports on HTIB and, only digital audio input port available is “Digital Coaxial In”.  WD Live has Toslink port.  If I connect my “Toslink port” to “Digital Coaxial In” will I be taking advantage of decoding of audio standards like DTS, Dolby.

I checked the docs for philips HTIP it supports decoding of above formats.  Here is the link of HTIB that I am interested in purchasing;jsessionid=D83A8CEE7CC05EF4F776F4A807BF7D17.app101-drp1?t=specifications

I guess i need to buy Toslink to Coaxial converter.  Something like this

Not sure if it will preserve the encoding of Dolby/DTS

For the price, you may want to try it out.  Such units are supposed to preserve encoding.

If you run into problems with it then you may want to get something more reliable but a bit more expensive like MidiMan CO2 unit (a bidrectional conversion unit).