Let's pretend the xbox is a dvd player (in essence,it is)you don't want to output the dvd player directly to the tv. The receiver is the brains of the operation...everything in,signal out. xbox in,tv in,tv back out to tv (from receiver).That may seem redundant,but that's how it works.
I consider myself fairly tech savvy but this sorta has me stumped at the moment. It seems as if the optical output on my 40"LED Samsung is only putting out Stereo. Here is my set up and how I confirmed it.
XBox360 ----(HDMI)----> TV -----(optical)---- Sony Surround Receiver
In this setup, the receiver is only showing stereo availability in (auto decide) for the optical input.
XBox360 ----(optical)---- Sony Surround Receiver
In this setup, the receiver shows all the speakers of the 5.1 setup illuminated. And sure enough my test DVD I am playing off the Xbox (Resident Evil) is playing in true surround sound.
Thus leaving me to beleive the output from the TV is stereo only? I've looked all over the menu and settings of the TV, I see nothing indicating surround output vs stereo to the optical output.
Has anyone seen this before? Am I doing something wrong?