I need some serious help. I have very little knowledge of AV so please be kind

I don't know why I purchased this receiver...maybe convenience of not running the cables through the wall?!?!
I have:
Philips 52" LCD 120hz with 4 HDMI, SPDIF out, etc
Onkyo SR606
Philips HTS6600 Ambisound (DVD player with 2.1 speaker) HDMI
Xbox 360 HDMI
HTPC HDMI
I have connected Cable/Xbox360/HTPC/Philips DVD home theater to HDMI IN ---> HDMI OUT to 52" LCD Philips.
Everything works fine but the speakers. I would like to utilize the Philips ambisound speakers from the DVD home theater. Currently Cable/Xbox/etc HDMI audio out gives to the TV speaker. I tried Zone2 out to AudioIN aux1 on my 2.1 ambisound but no sound. I have setup the zone2 ACT enabled, powertv, tvcontrol, all enabled without any luck. Why does it not work?
Also, should I run a SPDIF from my TV to 2.1 ambisound? What options do I have? Thank you in advance.
EDIT: I can only control the volume through my TV remote, since the audio is being processed through HDMI, shouldn't the 606 remote also affect the volume? confused...