I'm very sorry for any inconvenience this may have caused you. Unfortunately, this sounds like it may need servicing. Here's the thread where you can get details on setting that up: http://forums.cnet.com/7723-13973_102-542437/service-issues-click-here-for-help/
I bought a Samsung Blu-Ray home theatre system (HT-E4500) and everything works fine with it re:playing DVD's/Blu-Ray's and connecting it with the auxiliary cables.
But whenever I try connect anything to it (PS3, Apple TV, Samsung TV, DVR) via optical cable, nothing happens. The menu on the system stick with saying "insert digital optical cable to begin" or whatever the actual phrase is.
I know my optical cables work because connecting the cable from the Apple TV or PS3 to the TV has sound playing crystal clear.
I'm not sure if it's a fault or just a really deeply hidden setting that needs changing but I've tried everything I can think of.
Any help would be amazing guys/girls.