there is still some major conceptual roadblock here. you had TWO hdmi cables going to your TV? think about that, how does that make any sense? if the BDP is connected to the TV directly, what function does the 2nd hdmi cable serve if it's connected between receiver and display? your TV can't be tuned to two HDMI inputs at the same time!! I'm not even sure what you were trying to accomplish with that
If you are getting OSD over HDMI to your TV that means the HDMI video output on the receiver is working, and you probably have just mis-assigned your inputs or have a setting from on the player. You should definitely try going BDP > TV with one HDMI cable just to verify that it is correctly outputting video+audio over HDMI. Then worry about getting it to work going through the receiver.
Also, forget about the composite cables for audio, they shouldn't even be involved in this configuration.
Don't you think the issue here is me assigning the 2309 hdmi 1 to TV and hdmi 2 to DVD?
Yes, almost certainly. You said above you plugged the BDP into the 2309 HDMI-1 input, so why did you assign it to "TV"? If you want the BDP to play when you select the "DVD" source name, the HDMI input has to be ASSIGNED to the "DVD" name! Why would you assign it to TV/CBL?
It should go like this:
BDP >> (hdmi cable) >> Denon AVR >> (hdmi cable from MONITOR OUT) >> TV
Then just make sure that whatever HDMI input you plugged into is ASSIGNED TO "DVD". That is all you need to do. It doesn't matter if you use HDMI-1 or 2 or 3 or 4 on the Denon, as long as it is correctly ASSIGNED to the proper "name".
Again, I think there is a fundamental conceptual roadblock here and once it "clicks" for you it will all make sense