Digital out Coax from DVD to Reciever ? !!!!!?

OMG !!!!..3 days been working on it !..I have a New Magnavox DVD player DP100MW8B(lost manual).I am trying to hook it to my Craigs list 9yr old Philips AV Receiver FR965 (I have manual, but no remote yet)..all works Beautiful except the Digital out Coax connection from DVD player to the Digital in Coax 1 connection on back of receiver is connected, i just got video and no sound..wheres my 5.1 ?..and yes I can get simulated surround using the red and white patch cords using the VCR plug in on receiver..all is great but no 5.1..I called Magnavox..they said you dont have to turn on Coax out in the set up menu, it just happens when connected, then I called Phillips and they said that receiver is no longer in their system, umm, Good Luck HA !!..OMG ! HELP !!!!