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Hi Bob4, I don't see anything about ARC listed in the spec's of your Sharp AQUOS LC-40LE700UN. The best way to enjoy sound from any sources originating from your TV is to connect your Sharp AQUOS LC-40LE700UN to the AVR-S660H with an optical cable for audio. HDMI is recommended for sending any Video information from the AVR-S660H to your TV.
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