this will be very hard to help over the internet but i will give it a try.
Here is the user manual for the device:
You have the correct output set as CD. But i noticed on the front for line out record it shows CD. I would rotate that knob so its pointing up (remote select)
i noticed that you are using channel A and B. Do you have 2 sets of speakers plugged in? If not, i would suggest turning off one channel A or B which ever is not in use. (older receivers might split power between the channels when both are set to on)
you will also need to take it out of "surround mode" and put it on stereo mode. this will remove most effects and you should be able to control EQ with the knobs in front.