I don't have the Pioneer ( I have a Sony S550) but I intially had a similar audio problem.

I checked the Pioneer manual online and you have to make sure you have the Audio Output on the Pioneer set to "Multi-Channel" and your Outlaw on 7.1.

Regarding the video why not just run the HDMI from the player directly to your display? I do that and no problems.
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Outlaw 990/7700
SVS 20-39 PC +
SVS MTS-01 towers, MCS-01 center, MBS-01 surrounds
Behringer A500
Samsung PN58A650, DirecTV HR-20 700
Sony CDP-545, Phillips CDR 765
Oppo BDP-93, Panasonic DMR E515
Technics SL-DL5
Squeezebox 3
Remote Harmony One