Apple TV running 5.0, optical out not working, no sound
I just updated my apple tv to 5.0, hooked it up to my projector (HDMI) and to my Cambridge Audio Azur 640R for audio (optical cable). Unfortunately, no sound comming from the apple tv. Red light shines through the cable, already did a factory reset on the apple tv, played around with the audio settings on the apple tv, restarting it every time... no sound... and the receiver is set to recieve digital audio (tested it using another device to make sure).
any suggestions?
AppleTV 2, iOS 5