On the rear of the sony there are hookups for RCA and optical that are designated SAT/TV and that is where I have them connected. The only setting on the Sony that I can find lets you choose what Input and I choose Optical SAT/TV and all sound is lost. As far as the Satilite there really is no way that I have found to tell it what to send other than whether the receiver its sending to can except Dolby digital, PCM or both. I really think it just isn't sending a Optical signal at all. wish I had another reciever to try or someone with a DVD player.