To get the best results from that set-up, IMHO, it would be best to use a digital connection. Either digital coax or optical. Coax is generally easier to connect.
If you are referring to the small speaker icons at the right side of the display; those lights only indicate what is coming into the receiver. The only time you will see the surround back light come on is when the receiver is getting a 6.1 signal such as DD EX. The Auto display means the...