HDMI Audio digital popping sound

WD Legacy Products WD TV Live & Live Plus
1

My WD TV Live is connected to a Denon AVR-2309 via HDMI cabel. Settings in the receiver is Input: HDMI, Decode: Auto.

and then HDMI cabel from reciver to TV.

If I choose stereo on the WD TV, the receiver shows input as stereo and my files has DTS and DD 5.1 sound so thats a no go. If I set audio to digital in the WD TV receiver shows input as 5.1, but the sound is popping. What am I doing wrong?

2

My first guess is a bad HDMI cable or connection   DTS audio requires a higher bit rate, and thus may not work, even if it works for other systems.