If it were me, I would directly connect the DVD to The TV via the HDMI cable. Then I would run the DVD coaxial to the receiver for two reasons:
1 The coaxial cable is much more robust than optical.
2 You can use any 75 OHM video cable for coaxial audio. (Don't let a salesperson sell you an overepriced coaxial cable even if it looks like a piece of jewelry. Digital audio is either on or off.)
Then set the tv to the proper video input, then the receiver to the proper audio.
Hope that helps.