Like many people, I've been having problems with getting my 360 and receiver to achieve full surround.
I have the component cables hooked up to the TV, and the red and white cables plugged into the back of my LG(#LHT764) system, along with a digital optical cable. Keep in mind, the stereo sound works fine, but for some reason I can't get it to work in full surround. The service rep at LG told me to turn the receiver on AUX, but that just results in me getting stereo via my red and white cables. (note no sound comes out when they aren't plugged in). And I also have my 360 set to digital/5.1... and yes my receiver can get dolby digital. And also, the optical cable does have a small red light at the end so I know that it's not messed up.
I'm really lost as to what I can do now, thanks in advance.