freediver,
Thank you very much for your response. My TV sound menu is slightly different than what is in the video (I think it is a newer version) but I understand the options. I have tried selecting both of the the optical (TOS link) options with the same results (otherwise there would be no sound at all...). One is simply the optical output alone and the other allows you to keep the TV speakers active as well. I have no idea why anyone would want to do this (I could mute the TV speaker if it worked) but I tried them both.
The processor has indicator lights to show the incoming signal; Dolby Digital, DTS and PCM. Optical cables are supposed to support Dolby Digital, DTS and PCM so I think everything is OK when considering the processor. The processor is showing the signal coming from the TV as a PCM (pulse Code Modulation) signal. The TV just doesn't seem to output any Dolby Digital signals (5.1) no matter the source material for the TV. Every setting I try with the TV results in a PCM signal.
The surround processor manual tells me that PCM 44.1Khz supports both 5.1 and Pro Logic. On the other hand the chart shows that PCM 96 Khz supports neither. I figure the signal must be 44.1Khz (there is no indication) because Pro Logic works..
Maybe I need to contact LG tech support....
Any other ideas?
By the way, the processor is an oldie but a goodie. It is a California Audio Labs CL-2500 SSP. I also have the matching amplifier, the CL-2500 MCA. The MCA was (and might still be) the most powerful 5 channel amp on the planet with all five channels capable of 500 watts. The main speakers are B&W 801 Nautilus (with a matching Nautilus center channel and a pair of B&W rear speakers) and twin Velodyne DD-15 subwoofers. It is very annoying not being able to drive the system in 5.1. Very annoying to say the least! :(
I definitely appreciate your knowledge and thoughts about this situation!