re: Receiver set up help

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I searched everywhere for that feature on both receiver and television and couldn't find it or anything that seemed similar.

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Denon appears to call it "HDMI Control". Your AVR should have it.

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As of now I only have surround speakers and do not have front left, front right, center channel or subwoofer. Those all come in the mail tomorrow. Could that possibly be the issue?

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With just the surrounds connected (as surrounds), I don't understand why you were getting (normal sounding?) audio before. With just two speakers, you would have wanted to temporarily connect them as fronts!

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In the above diagram. I have completely skipped the optical cable. Is it necessary and could this be part of my problem?

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Not part of your problem. The TV's optical out is useful only for audio that doesn't first come into the AVR, e.g. built-in TV apps, TV tuner, or components that are plugged directly into the TV.

When you get all your speakers, run the auto setup using the setup microphone. This will set the distances, levels, etc and should play tones to help you identify the speakers and confirm they're hooked up correctly. When that's finished, review what it did, particularly the speakers' sizes and the crossover for the sub. As you have a subwoofer, if it set the speakers to large, you will probably want to override and set them to small.