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I finally got the optical to work using the DVD port and playing around with the non user friendly Yamaha settings and it worked. The only issue I have at this point is I can't get the surround sound working for the DVD player now. Not a big deal being that I really don't rent movies since upgrading to Fios anyway.
Thanks for all the input.
You may be able to assign your audio input from your DVD player to another input in your receiver. For example, I have my DVD player plugged into the CD input on my receiver. It's not optical, of course, but it works.
I have it hooked up via component cables but it is not working. I will try tweaking it this Saturday.