I have optical cable connected from LG TV output to Digital3(TV) on receiver. OPT.DIG.IN is set to 2CD 3TV 4DVD. Input ANALOG/DIGITAL is set to AUTO/PCM. Surround is on. I set the TV to output to optical and not internal speakers. No sound. Please help.
You need to assign Digital 3 to input 3 (TV). Select that input. It will by default be on Auto/PCM.
The TV output would be set to Bitsream for surround sound. Try setting the receiver to Dolby Digital too.
Here's the manual http://resources.jvc.com/Resources/00/00/96/LVT0428-001A.pdf