I have an HTPC with blu-ray hooked up to the BD via HDMI and the cable box to DVR/BDR via HDMI and the dvd player to DVD via component and digital coax.
I have the same setup as yours but I chose different Inputs for my Devices.
I went straight across the HDMI Inputs:
1) HTPC with Blu-Ray to HDMI 1
2) Time Warner Cabl's DVR Box to: HDMI 2
3) Panasonic VHS to DVD Burner/Player to: HDMI 3
I did this for ease and so I could just move left or right through the HDMI Inputs with the Arrow Left and Arrow Right buttons for Input Select.
If I had a dedicated standalone Blu-Ray Player then I would probably use the BD Blu-Ray Input but because it is part of my HTPC and there are other types of content such as Streaming, Music, Games, etc. I just use HDMI 1.
I am sure that it is probably 6 of one and a half a dozen of the other, if you get my drift.
When I turn the receiver to the cable, a nice dolby digital sign pops up. But when I turn to DVD or BD, only stereo pops up
1) DVD: The receiver is really not lying, because unless you have a DVD Player that support Surround, most DVD's are just Stereo, but I do see DVD's with 5.1 Surround.
I would probably choose your Surround or Advanced Surround modes on your E52.
In the Surround mode such as DOPLII Movie or DOPRO Logic or what you like best.
2) Now your HTPC's Blu-Ray Player: Here's the rub on this, it really depends on a few things:
a) The Software that Processes and shows your Blu-Ray's ie, PowerDVD or some other Player Software.
b) The Video/Soundcard that transmits the Video/Audio to your receiver.
I have two HTPC's:A Gateway that has:
(related to a & b above)
a) Cyberlink's PowerDVD 10 to show the Blu-Ray's
b) XFX Radeon HD 5770 Video / Audio Card.
This upgraded AV Driver Card that I installed, utilizes HDMI Processing along with HDMI Out for the Video and the Lossless Bitstream quality Audio that PowerDVD 10 extracts from the Blu-Ray Disc.The second HTPC is a HP
a) HP MediaSmart Blu-Ray / DVD Software based on Cyberlinks PowerDVD 8, but the Software does not support Lossless Blu-Ray Audio.
b) ATI Radeon HD 4350 Video / Audio Card. with HDMI Out.
Video Card Audio specs: HDMI output support
*Supports all display resolutions up to 1920x10802
*Integrated HD audio controller with up to 2 channel 48 KHz stereo or multi-channel (7.1) AC3 enabling a plug-and-play cable-less audio solution4
For me to be able to play Blu-Rays in Full Surround and not see as you do "Stereo" I need to be able to get into the HP MediaSmart Software and select the Audio that I need.
The bad part is that I can not (as I can with my Gateway and standalone PowerDVD 10) get into the Options of HP's Proprietary Software to select Surround Audio.
I am going to end up uninstalling HP's MediaSmart Software and Installing (as in my Gateway) PowerDVD 10
I should then be able to play Blu-Ray's in full Surround.
As a side note though, you want to also be sure that your Blu-Ray Disc Drive is up to ACS 7.1 Audio.
In my PowerDVD under the Audio selection, I can choose PCM Decoded by PowerDVD or Non-Decoded Dolby Digital / DTS Audio to External Device.
You want to use the second choice.
You could also go into the Software that opens when you play a Blu-Ray and see if you can get into the Audio options of that Software, if you can. then set it to let the External Device, your E52 receiver decode the Audio.
I hope that this will help more than confuse.
Bottom line is that the "Stereo" is due to your HTPC and not your new E52 Receiver!
Right now you have "GIGO" Garbage In / Garbage Out!