I am confused by your saying "When I set my DVD player for dts out..."
This is the obvious response, but I worry that if you are already aware of this you will feel I'm insulting your intelligence. I assure you, I don't mean to do that, I just want to cover all the bases.
Do the DVDs you are trying to play have a DTS track? Many do not. When you load your DVD go to the main menu, and look for a sub menu like "setup," or "audio" or "language." In that menu, if the DVD has a DTS track, you will find it as one of the choices. Select it, and your receiver should automatically switch to the DTS mode. If there is nothing about DTS in that menu, then the DVD doesn't have a DTS track.
Do NOT plug both a coaxial and optical cable from your DVD player to the receiver at the same time. If you do, your receiver defaults to the coaxial input, which, unless you have manually changed it, is set as your CD player input. I took a look at your receiver's manual, and the only digital cable you should be running from your DVD player to your reciever should be an optical cable to digital input #3, which is the default digital input for your DVD player.
Again, if all this is eliciting an "Oh, I already know that, you idiot. That's not the problem." response, I humbly apologize.
Keep us posted.
