I also have a problem with the Denon AVR-2802. Worked fine in 5 years. This spring some of the channels started to drop out, and I returned it for repair. The terminals was soldered by the repairshop and it seemed to work fine after this repair. Now no sound is produced from the speakers (both in playback with tuner, dvd, cd-player and in the channel level configuration). If I just turn the reciever on in very high volume (-05) i could hear a very weak output in the speakers, almost as if the amplifier doesent add any amplification to the signal.
Odd that so many on the web has this excact problems with the AVR-2802 after 4-5 years.
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If you look at page 16 of the user manual it tells you how to assign the devices to the optical connections. Once this is done it should work.
If you don't have the manual just type "denon avr 2802 manual" into Google and it will show a free PDF file of it. On my search it came up first!
Try doing a factory reset by turning off main power switch.hold down speaker a and b buttons while turning on main power switch ,display will flash 3 time s then release buttons,this then returns unit to factory default settings.
You cannot put de leads from an MP3 player or your TV into the pre-amplified connection of your Denon,
the phono "stage" is a low input stage, your input from MP3, TV, CD, DVD oscasetteplayer is high output (a 5 to 10 times stronger signal)
Try every other stage like tape 1 or 2, this will work just fine,