Yup, the TV has just one optical digital output, and the preamp does not have anything remotely optical. I just find it odd that I can get a CD to play music to the preamp, but as soon as I pop in a dvd I get nothing to the preamp. OR, if I put in a CD and turn on the TV and hit the DVD input, I get a list of the tracks, and the sound will come out of the TV, but will not come out of the stereo.
PCM was already on, so I turned it off, nothing; I changed downmix from surround encoded to stereo, nothing; I changed 7.1 ch audio reformatting to off, and nothing; I changed Digital audio output from bitstream to PCM, nothing.
So, what's left? just getting a digital to analog converter as TrebDP83 mentioned doing? How does that hook up?
I saw a cheap converter on Crutchfield for $25 if it would work.
It is not odd, but your problem is a requirement of law. It is all about digital rights management. After the analog sunset, there was a forcing of HDMI for AV. CD is exempt, as there are lots of CD players with analog outputs. However, the producers want to copyright the audio from AV sources. In other words, they do not want you to make an audio recording from your gear, like a reel to reel player, cassette player or VHS player. I think this was over the top, as if you have a pro recording setup with pro software, you can record, from a digital audio output. This draconian DRM created a lot of pointless complexity and you have run right up against it.
Unfortunately in AV if you want convenience, you are forced to update to HDMI connectivity, and this was by intent. You are paying the penalty for using analog only equipment in the modern AV world.
As far as your DAC converter is concerned, I would advise getting one with a volume trim on it. Some of those DACs are hot for older RCA analog connections, also it helps optimize the signal to noise ratio. My experience of of those units, is that the S/N ratios are all over the map. I got experience of those before my parents died.
They are just about OK, but your only option.
If you have a lot of older analog gear, as I so, you have to plan carefully. So I have my analog turntables, various tape machines and decoders, connected to high quality vintage preamps, including one tube unit. They are all Quad units (22, 33 and 44). These feed into a switch bus which outputs into a Marantz AV preamp. So all the gear only takes one analog input on the marantz.
So you might want to consider getting an AV preamp, it would certainly make life easier and improve your AV experience.