What do u mean by 'Analog' & 'Digital' audio out ?

Analog out has to go to analog in. Digital out has to go to digital in. Analog audio is the "old" standard way of doing audio. Connect speakers or an amp and speakers and your all set. Digital is the audio is 1's and 0's. It will have to be converted to analog before it can be sent to the speakers. The only real difference is where the audio is converted. It can be converted inside the Blu Ray player or it can be converted by another device outside the player. Either way it has to be converted. If the outside device is good quality there will be no difference in what you hear. You can get surround sound or any other audio system in analog as well as digital.

7.1 audio out put means, your speaker arrangement should like central,front (l,r),side(l,r),rear(l,r). digital out put means,the out put from a digital media like cd,computer,music player etc... . analog medias are vedio cassete or audio cassate etc... .

You need a 7.1 surround receiver to get 7.1. You can get a 5.1 Dolby digital speaker system to play surround from a Blu-Ray player.