I guess I confused you the only optical cable I am using is from the oppo to the receiver. I do not have an optical cable from the uverse to the receiver. If cd's are working fine useing the oppo with the optical connection to the receiver would that mean the cable is ok?
Thanks for the imput,
Likely yes. Did you set the Optical/Coax output of the OPPO to Bitstream? That's a separate setting from the HDMI Audio setting.
While playing content over HDMI Input into the OPPO, press the Info button on the remote (upper right of the arrow keys). The on-screen display that comes up will tell you exactly what's coming in for audio on that HDMI input. So you'll know if the problem is that the Uverse is sending stereo to the OPPO when you think it should be sending 5.1. Of course not all programs are 5.1.