Ok, this might make me look stupid, but here goes; it wasn´t stated in the instructions: the TV settings are source specific. I was able to change my sound setting for Netflix to DD and now I get it in surround!
I am unable to do similar for external sources (my computer) connected to the TV via HDMI; sound via Toslink from the TV seems to be in stereo. However, there appears to be a work around; I tried the HDMI link just for the picture and took the accompanying audio direct from my Mac to the processor, via USB/SPDIF converter to get it to the Coax input. The sound is far superior. Maybe not definitive; still working on it.
I am unable to do similar for external sources (my computer) connected to the TV via HDMI; sound via Toslink from the TV seems to be in stereo. However, there appears to be a work around; I tried the HDMI link just for the picture and took the accompanying audio direct from my Mac to the processor, via USB/SPDIF converter to get it to the Coax input. The sound is far superior. Maybe not definitive; still working on it.