PLII will be engaged if you set that as the default surround mode for 2 channel sources. The 2 channel source can be analog, PCM, or DD 2.0. If you are always getting PLII when playing a DVD that is definitely DD 5.1, then the problem lies in your setup.
You said you had the orange digital coax cable connected, but did you set the dvd player to output 'bitstream' instead of 'pcm'? If set to PCM you will get a 2 channel downmix and it sounds like that is exactly what is happening. You also have to tell the receiver which digital input goes with the input the player is connected to. If the dvd player is connected to the 'dvd' input and the coax digital cable is connected to 'coax 1 digital input' you must make the assignment in the receiver's setup to tell it that coax 1 goes with the dvd input.
Note also that for DirectTV or cable, the signals are digital but are not always 5.1. Sometimes they are PCM or DD 2.0, in which case you can only get surround by using a matrix decoder like PLII.