I'm a little confused by your use of 'composite' with audio, as in "Does anyone know what would happen if I ran both composite audio and optical audio both to their respective TV/SAT IN input jacks on the STRDE935 ?". What is composite audio?
The manual claims on page 48 that you can't record digital audio out to the analog REC OUT jacks.
http://www.retrevo.com/s/Sony-STR-DE935-Receivers-review-manual/id/387dj981/t/1-2/
I say 'claims' because the engineers or manual writers clearly are not as creative as you are in trying to wring as much utility out if this unit as possible.
I can't find an answer but I would offer this - if you are recording anything though any AVR, as soon as you choose to monitor the audio the digital input is usually disabled.
And I would be curous to hear more about what you're doing and how you finally achieve it.
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