Can you help me with this HD/DRM/Apple/Home Theater problem?

We’ve recently gotten into Battlestar Galactica (who knew—it’s totally not dorky!). I’ve purchased a few episodes in HD on iTunes. Here’s the problem: I want to be able to watch the episodes on my HDTV and through my sound system.

I can hook up my video pretty well through HDMI, but the audio is really bad coming through my mic jack. I have an Xbox 360 hooked up via component and optical audio and I can stream from iTunes via connect360, but you can’t stream DRMed video or audio (boo apple!). Ultimately, I’m looking for a long-term solution, so my options are:

1. Find a non-DRM source for HD Battlestar episodes.
2. Figure out how to strip the DRM (while leaving the audio in 5.1 format) so I can stream it to the xbox.
3. Figure out how to hook my MacBook audio up to my stereo system without it buzzing.
4. Buy a PS3 and just get the blu-ray from Netflix (but then I’d really be in trouble… I’d have way too many consoles).