OK - I finally bought component cables from Blue jeans and a digital audio cable.

Equip.- Yamaha 5650 reciever and Sony DVD 5 disc player

I ran one set from DVD player to Reciever than the other set to the TV.
I ran the Digital audio from the DVD player to the Reciever.(on the reciever it is labeled as the CD audio input - the DVD audio input is Optical)

This would not work at all - I even changed the settings on the DVD player to recognize DTS, and nothing.

I played with it for so long, i got tired and finally went back to composite and it worked perfectly.

Anyone that could help me?....Thanks