Sound From My Non-HDMI Receiver

[filegumbo]

I have a Samsung BD-P1500 player and an NAD receiver without HDMI inputs. I connected the HDMI cable from the player to the back of my Samsung TV and the optical audio cable from the back of the player to the receiver hoping to get surround, but the sound is coming from my TV speakers. I went into the audio settings of the player and selected Bitstream (re-encode) as per the manual's suggestion for a receiver like mine, but I think I need to be doing something with the receiver.

How should I troubleshoot, and is there anything else I should be doing? Thanks for any replies.