"I even tried connecting HDMI to my TV and optical cable to the DVD."
That is exactly the way you want to connect it, because your receiver doesn’t have any video inputs, only audio inputs.
The trick is that you have to set the TV’s input to where the Blu-ray player is plugged in (HDMI 2?), so that you get the video. Then you set the receiver input source to play the optical audio from the Blu-ray player (it might be called auxiliary or external, optical 1).
You may also need to set the Blu-ray player to output audio from the optical port. Perhaps your player disables optical audio output when an HDMI cable is plugged into it, or else the port is disabled by default and needs to be enabled (set optical audio output to on).
"I even tried connecting HDMI to my TV and optical cable to the DVD."
That is exactly the way you want to connect it, because your receiver doesn’t have any video inputs, only audio inputs.
The trick is that you have to set the TV’s input to where the Blu-ray player is plugged in (HDMI 2?), so that you get the video. Then you set the receiver input source to play the optical audio from the Blu-ray player (it might be called auxiliary or external, optical 1).
You may also need to set the Blu-ray player to output audio from the optical port. Perhaps your player disables optical audio output when an HDMI cable is plugged into it, or else the port is disabled by default and needs to be enabled (set optical audio output to on).