I went through all the various set up variations when I upgraded my system to hdmi, trying to see how I could get closed captions. From what I learned, CC is an analog signal only, and is not picked up the the digital hdmi connections. Both component and composite lines will transmit CC.
On one trial, I hooked up my DVD player to the TV by both HDMI and component, hoping that by switching my TV input selection, I could get CC when I wanted to by selecting component. Unfortunately, both my TV and my receiver (I also tried this going through receiver) are too smart for me, and are giving HDMI priority if both HDMI and component are connected.
So, I have had to give up on CC from my DVDs, since I don't want to be disconnecting and reconnecting my cables all the time. For my VCR, I have the composite video cable going directly to the TV, and my sound only going through my receiver.
I guess they are hoping that more companies provide SDH subtitling (subtitled for the deaf and hard of hearing) on their BDs and DVDs, so that it can be transmitted over HDMI.
Prof. Bergman, Moonbase Alpha