I have an Onkyo TX-SR500 that I've been very happy with as the centerpiece for a small, modestly-priced home theater system. I recently purchased a Panasonic DVD-F85 5-disc changer to go with a new Hitachi widescreen. I have the component output from the Panasonic running directly to the TV and the video is great. My issue is that I can't get the Onkyo to process either Dolby Digital or DTS signals from the Panasonic DVD-F85. I'm using an optical cable connection. I can get the system to work using either Multichannel (running 6 RCA cables from the Panasonic 5.1 RCA outputs to the Onkyo's 5.1 RCA inputs), or by setting the Panasonic to output PCM signals for both Dolby Digital and DTS, and setting the Onkyo to Dolby Pro Logic II (using the optical cable). Neither of these of course provides the same sound 'experience' that I'm looking for. I am 99% sure that I've tried every combination of digital input settings on the Onkyo. Dolby Digital and DTS both work fine when I hook up 2-year old Sony single-disc DVD player (which doesn't have progressive scan or component out unfortunately). My question is am I missing something here, or is the digital signal from the new Panasonic not compatible with the older Onkyo? I'm hoping it's the former. If it's the latter, can someone recommend a relatively inexpensive DVD player with progressive scan and component out that will work with the TX-SR500? Thanks in advance for the help!