Newbie problems with Pioneer VSX-1015



My equipment is as follows;

Hyundai 42" plasma television
KEF KHT 2005.2 speakers
Toshiba SD-350e dvd player
Pioneer vsx - 1015 receiver

Today i installed the pioneer receiver, kef speakers and toshiba dvd player and while the video is good the audio is poor as it is only picking up stereo even on full surround dvds (such as LOTR and shrek 1 + 2), it wont automatically pick up the surround sound and when i select DPL2 (which i should not have to do) the volume drops to a laughable level and the voices are barley audible and it is driving me nuts, please can somone help (the dvd player audio is connected to the receiver via a digital coaxial cable) is there a setting i need to adjust or am i missing something completley obvious? My chepo panasonic all in one system which i have upgraded from sounded miles better than this which is a bit annoying seen as i have just forked out £1300!
Have you set the DVD player to output DD 5.1?

Pio will tell you what it is receiving.

Have you set the input to AUTO rather than ANALOGUE on the 1015?

Have you performed the MACC calibration using the supplied MIC?
Yes i have performed the auto setup using the supplied mic. On the pioneer display the word "digital" is present. On the toshiba should i set the audio to PCM or bitstream? They are the only audio options i can find?! Also, this morning, when i finally got the dolby digital symoo to appear on the display the sound effects could be heard but no voices?! At the mo it will only play in stereo, dpl2 or 7 ch stereo?
On the DVD audio should be set to bitstream. Also check if the DVD player is not set to down sample to 2-channel. I don't know the player, but came across such a problem on a friends player which was set to downsample to stereo mode instead of 5.1.

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