Yes, I have come to the conclusion that the SONY AV Receiver doesnt seem to like LPCM at all
I connected the HDMI to the tv directly, and took optical from tv to the Sony receiver, with tv speaker off and it works, only in stereo though, a 'feature' of the tv, specifically listed in the manual for the tv.
So I bought this:http://www.amazon.com/gp/product/B003U1 ... ss_product
It is a hdmi switcher that give optical and coax digital sound output as well as switches 3 hdmi inputs. It fudges the EDID from the tv side of things to allow all sound formats (and it assumes you really dont want sound out of the tv). So you get your full 5.1,7.1,dts,true, etc out of the coax and optical . I only have 1 input so the switcher stays on position 1 always.
I then connect the hdmi to the switcher and switcher to the AV Rcvr, and optical sound to the rcvr and tell it to use that combo for that input (Input assignment).
.EDIT. The switcher came in and WORKS! Plugged
Hdmi in it and it to the av receiver. Worked out of the box!
It was pricey, about $75 and I wish they made a non switcher version as it would be about half price but it works!
Even better, the multichannel sound works in the hdmi cable and the optical/coax output cables!