geearr:
I have also used the Jaycar Toslink to S/PDIF to connect a PS3 into the BV7-40 Mk2 and it works very well. However, both the audio and video go into AV4 and everything can be setup in the config menu. I think that this is the proven way to go and I don't think that you can run the other two inputs (camcorder and A4) together at the same time - might be wrong though!. If you can get the right video cables, I would choose that route.
I have used AV4 for a Panasonic Blue Ray system, it also uses the DVI input and A1 on the coaxial digital input. Just the way it was orginally setup. On my setup, AV1- V8000, AV2, Foxtel IQ, AV3 - Wii, AV4 - Panasonic STB. Camera - Apple TV, Projector - None.
Near as I can tell the A1-A4 ports are independant of AV1-AV4 though its sensible to match them if the connected devices output digital and analog audio.
I also have a box full of cables but I am still left at the same problem..
beoaus.