What source unit are you hooking the 805 up to? If it's a dvd player you may have to go into the players menu and activate the component output. Many dvd players won't send a signal from composite/s-video and component at the same time.
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Also I set it to the setting where in the manual it says to lower the volume on the receiver and the volume will come out of the Tv, when i do that it also doesn't work.
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Not sure what they are saying. If you want to use your tv's speakers you should hook up your source straight to the tv. Again, need to know the source unit.