Surround sound issues (&HDMI)

then youre not getting 5.1 surround. You maybe getting Pro Logic though.

The optical/digital coax connection has to come from the source. Not converted i.e. RCA into TV, then TV Optical into receiver.

Does your receiver/cable box have a digital coax in/out? Who is your cable company?

All of comcast’s new boxes have these inputs. If you bought your HDTV then go for an HD receiver, they will have the desired inputs/outputs you’re looking for.