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I don't have a digital cable, but that was my next try. Is it possible I need to run the component video through the receiver to make it work. Right now the video is connected directly to the TV.
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You can leave the component connection to the TV. That does not affect your audio.
Those multi channel connections you are using would typically be used for Hi-Rez music (SACD or DVD-Audio) not for watching DVD Movies, if I am thinking correctly about this. Get yourself an optical or digital coax cable and run it from your DVD player to your receivers DVD input for this cable type, this should solve your movie woes.
Another solution for you possibly would be to select the 5.1 input on your Sony receiver. The optical cable will in my opinion sound better for movies though.