This is an old thread but just in case someone else comes along to read I'll give my 2 cents worth. As long as you have a system that is capable of working with compressed dolby digital, and most people should, then using that is fine. I've read comments here about compression being lower quality than uncompressed, and theoritically that's true. However, to what your ears can percieve, it's not true. As long as there is enough bandwidth for the sound, compressed audio sounds the same to the typical listener. With music that bandwidth happens to be around 192kbs. Music has much more depth than does a typical movie, so even lower rates can be used for most movie sound.
A test was done via Maximim PC over music compression compared to uncompressed sound and this is what they found:
Using a collection of people that had different tastes of music, they played the person music they were familiar with and unfamilier with, including different genres (classical, jazz, rock, etc...) . They had to guess which was which. The compression used 128kbs, 192Kbs, 256Kbs and 320Kbs. They found that people guessed wrong as much as they did right, EVEN with music they were familiar with. This suggests that people couldn't tell the difference. Now, viewing the waves of the sound showed differences with the lower compression rates, but once the rate was up to 256Kbs, the differences were incredibly small. Typically the compression rate of an audio track on a bluray is pretty high, meaning there is plenty of bandwidth, so the compressed audio doesn't suffer from the inablity to keep track of the entire sound range, and start generating sound artifacts, just as what happens with the compressed video you are looking at while you are watching the movie. The video is compressed. As long as the cameras are high quality, I see fantastic images from bluray. The same is true with sound. As long as the sound was recorded well, using good equipment, then the compressed version of that sound is perfectly fine. People who say otherwise have probably never done a side by side test with a good collection of sound files to know what they are talking about.