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According to the models you provided it looks like the DVD player has only HDMI out and the sound system you have does not directly support that. I would suggest purchasing a HDMI audio extractor so that you can covert the digital signal from your blu-ray to an analog signal. However, there are other ways of doing this. If you provide me with your TV that you use I might be able to advise another work around.
Go on google and look for "hdmi audio converter" or "hdmi audio Extractor".
Make sure to look at review to determine the quality of the product and decide what device fits your budget.
as far as hooking up your blu ray player to the sc-pt660, the only real way to utilize the surround sound (with true surround sound) is through the optical audio out. You need to connect your blu ray player through hdmi to your tv and then connect your blu ray player to your surround sound using the optical audio out/in. I, personally have the sc-pt660 hooked up through component cables so I don't waste an HDMI input on my TV. Except for cd's, there is no reason for you to use the actual dvd player part of the surround sound considering you have a blu ray player. In conclusion, hooking your blu ray player and the sc-pt660 up to get better video simply isnt possible (your blu ray player alone gives the best possible resolution, 1080p). As far as audio goes, run an optical audio cable from your blu ray player to your sc-pt660 to get true surround sound.
You can use the PANASONIC AUX IN ports for your TV or CABLE BOX audio, unless you run the DIGITAL CABLE into the PANASONIC, this may be available on the CABLE BOX or your TV, my suggestion is if you use the Cable box to view TV then use the CABLE BOX AUDIO OUTPUTS, you would be better with the CABLE BOX digital output INTO YOUR panasonic, but if it is already being used take the AUDIO out analog connection from your cable box into your Panasonic AUX INPUTS, then set the Panasonic to AUX IN mode.
Select to suit the type of audio from the OPTICAL IN terminal on the main unit. 1 While in “D-IN” mode Press and hold [—SETUP] to select “MAIN/SAP”, “DRC” or “PCM FIX”. 2 While the selected mode is displayed Press [up, down] to make the setting. MAIN/SAP mode (Only works with Dolby Dual Mono) MAIN, SAP§, MAIN+SAP§ (stereo audio) § “SAP” = Secondary Audio Program Dynamic Range Compression DRC ON: Adjust for clarity even when the volume is low by compressing the range of the lowest sound level and the highest sound level. Convenient for late night viewing. (Only works with Dolby Digital) DRC OFF PCM FIX mode PCM ON: Select when receiving only PCM signals. PCM OFF: Select when receiving Dolby Digital and PCM signals. [Note] Audio that is input through the OPTICAL IN terminal cannot be output through the HDMI terminal.
Don't worry about sending the TV audio to the Panasonic. Just send a digital audio signal from the cable box to the Panasonic.
DVD - Panasonic connected via HDMI
TV - Panasonic connected via HDI
cable connected to cable box and TV. But you will not really be using the cable connection to the TV (TV Tuner) since you will want HD feed from cable box through HDMI input on TV.
You aren't concerned about feeding the TV speakers because your audio will always come from the home theatre.
Note that some components don't feed audio through HDMI, in which case you will need to use optical digital audio.
Sounds like it's just in 2 channel stereo mode, only 2 speakers working out of 5 and a sub, look for a selector switch for switching to 5.1 surround, as far as the no video problem try replacing the cable for the video connection.