Onkyo and Wadia Connections

You might try moving the Wadia's cable to coax 1 on the Onkyo and choosing the receiver input that defaults to coax 1. Just standard troubleshooting practice to see if the problem is unique to the input that you've chosen.
The next step is to choose a different output on the Wadia (if there is one) for the same reason.

Good Luck

Marty

Ok, now I have it in CBI/SAT and it defaults to Coax 2 where I have the Wadia in. Any other ideas?

Well think about it - you hooked the wadis up to a coax input, and you are confused that you are not getting sound from something that uses the optical input?

You need to find a way to set the onkyo to use coax 2.