You can check with the techs at Sunfire, they will tell you that if you use the 8 channel analogue inputs that you WILL hear the HD Lossless sound, it does work, I have been using it, so this is a misnomer from people out there thinking that you need the HDMI cable to get it, you don't, you can use your Analogue 8 channel outs.
just want to emphasize that going analog may sound "better" with lossless than going with lossy over SPDIF... BUT... the with an analog pathway the sound can only be as good as the DAC section in the player. Trust me, with my friend's Lexicon, going analog with the Panny BD50 did NOT produce satisfying results. We ended up listening to lossless via 2.0 downmix over SPDIF because it sounded better than the 5.1 lossy core *and* using the 5.1 analog inputs coming from the Panny. The panny BD player's DACs just weren't up to par given the sound of the Lex.
At home on my Marantz 8002, the same Panny BD50 sounded much closer over analog to the digital pathway of HDMI... but HDMI was the clear uncontested winner.
Any serious audiophile should not kid themselves that any average consumer BD player (or CD player etc.) will have transparaent enough D/A conversion to satisfy a high-end rig. Just let it go. If you want to get a low-cost BD player with 5.1 analog outs to connect to your high-end processor to "play" with lossless audio in a known-compromised way while you wait for the permanent (and more $$) solution down the road, that's great. Just keep your expectations in check... and do consider getting a player designed for good sound over analog (like the newer Panny BD55 or Pioneer etc.). And if you do think that the sound of lossless over analog with a consumer player sounds much better than lossless over SPDIF, then be aware that going HDMI will sound *even better* when you're finally able to incorporate that connection into your system.
HDMI should be the last connection we have to worry about for a long time. Just get HDMI 1.3 to stream advanced audio and firmware updates should take care of whatever innovations come down the pike for at least 10 years.