Have you read your Onkyo manual closely? Pages 72, 73 & 74 describe HDMI, audio formats and Onkyo's exclusive
RIHD for controlling Onkyo and RIHD-Compatible components... do you have RIHD components? You're setting it to On. Is your TV a "smart" TV and uses ARC? Please, if you don't have these then revert to basics.
You say: "...then configure it for 5.1 which is what I have (paradigm setup),..." STOP, please... WHY configure your computer
to 5.1? Your SPEAKERS are connected to your Onkyo and NOT to your COMPUTER as the image you posted states! Please pic the Stereo option, not the Quadraphonic, not the 5.1 Surround, not the 7.1 surround and play a physical DVD (e.g. not BR) in PowerDVD that has a DD and/or DTS audio track. That should be a start!
You do know that it's the source material that has manufacturer-specified audio tracks, right? Not all DVDs have DTS, in fact very few have a DTS audio track while the majority have DD. Some even have both while some have several including Director's commentary, foreign language DD tracks, etc.
As far as DTS HD, now you're talking HD audio which is exclusive
to BR and again, not all BR discs have all the formats included in the press. You have to
pick a track on the disc... so when you say you can't get DTS-HD does
that disc have a DTS-Master Audio soundtrack on it? If so then it's either going to clear up once you get bitstreaming configured right, or one of those using PDVD3 can attest to configuring it to pass this... BTW, PDVD3
is like 15-years old... I think you meant PDVD11
as stated way above
And that last pic shows you have NEO:6 Cinema and the Music Optimizer set to On, why? I'm not even sure it would work if you're passing the correct signal... please read page 51 which talks about using it with "lossy" compression, such as MP3 as well as:
The Music Optimizer function only works with PCM digital audio input signals with a sampling rate below 48 kHz and analog audio input signals.
as well as Page 36 which shows it as a matrix from a Stereo source -- perhaps the VCR you have selected in that pic? I'm trying to figure why DTS would be illuminated in that pic!?!