No Stereo audio when playing Pandora in Zone 2 on my Denon AVR

I am about to pull my hair out.  I have a Denon 1908 AVR that I want to use with my WDTV Live so I can listen to Pandora on our outside speakers.  To do this, I intend to use Zone 2 setup on my Denon, but it does not accept digital audio on Zone 2.  Soooooo, the fix is to double up the outputs from the WDTV Live and use the included analog audio cable to output stereo audio to my Denon.  Problem is, I get no audio at all.  I have the Live hooked up to my TV through HDMI, and the optical audio running to my Denon.  I have tried all the different audio output settings (digital, digital via optical, stereo) with no luck.  I know Zone 2 audio works on my stereo because I can output Pandora through my TivoHD to Zone 2 on my Denon.  Anyone have any thoughts?

Hi there, just for the sake of trying, what if you disconnect the optical cable to try to output only from the analog composite cable?