I'm new :-) Home Theatre newbie with questions on new audio setup

[CartaX2]

Hey everyone!

I am brand new to registering on this site, but have been using it for quite some time for reviews on blu-rays and equipment. I have had hi def gear for the past two years now, but only yesteday did I finally get myself audio equipment capable of decoding hi-def audio. However, where I am a newb when it comes to anything remotely complex when it comes to this kind of thing, I wanted to ask you fine people some questions.

Here is the equipment I am using

Samsung BP-1500 blu-ray player
Denon AVR 790 reciever
Samsung 40" LCD
Klipsch 300 HD speakers

I only just installed the audio stuff last night with a friend. Here is my dilemma. I am aware that both my player and reciever are capable of streaming hi def codecs, but I have no idea on how to make this happen. I am running hdmi from the player to the reciever, then from the reciever to my tv. However, the display on the reciever does not light up the "HD Audio" indicator when I am playing any blu-ray discs. I have only used "Taken" as a test subject. The visual display automatically shows PCM when the movie is playing. I have no idea what to do in order for it to decode and read the HD codec included on the disc. My players audio settings has three options. 1. PCM 2. Bitstream (re-encode) 3. Bitstream (audiophile). I have it set currently to PCM.

So, anyone have any ideas? Keep in mind, I am very new to this reciever and really don't know much about what it is capable of, but all I am really concerned with is listening to high def audio. If you can offer any suggestions, that would be great.

Thanks a bunch!