What is the reason for using component instead of HDMI directly to tv? Because there is no HDMI input, and you were trying to do something like HDMI to receiver, with component out from receiver to TV? (that won't work).
There is some HDMI setting on Onkyos, at least on previous gen's, and I think* it's supposed to be set to "off", which is not exactly intuitive. IIRC.
Can the LG output video just fine using HDMI output directly to TV? If not, it must be either some setting, a defective player(?), or HDCP handshake issue.
If there is a handshake issue, you might try turning on the components in order of the downstream direction. As in player first, receiver next, tv last. You can try the opposite for the heck of it too, but I believe what I offered is the usual advice. (sometimes a tv looks for the handshake, doesn't see it, believes there is an issue but doesn't look for the handshake again).
good luck.