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Optical Switch? And other cable advice?

Hi,

I'm a first time poster so go easy... 

My old home cinema system does not have any HDMI and only one optical in.  Until recently this was good enough to run my sky+ on 5.1 but I'm now in the process of upgrading my AV equipment and have just acquired a new 1080p tv (KDL-40V3000), dvd recorder (RDR-HXD970) and PS3.  In the long term I'm planning to get the TX-SR605 to accept multiple 5.1 (or 7.1) inputs, but I wondered if using a relatively cheap optical switch would be a acceptable stop gap for the time being?  And if so, which if any would you recommend?

My second question is whether it is really worth forking out for top quality HDMI cables?  Having already spent quite a bit on decent(?) equipment I want to make sure I don't let the side down with poor cables, but I'm looking for good value for money and the QED Qunex look a bit pricey...

Any advice is much appreciated.

Cheers.