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"Digital optical is greyed out, so I can't select it."
This is just weird - i'd also go back to hisense on this one...
Another thing just struck me - are you using the TV USB port to power the DAC?
Sometimes these ports dont really have the snot to power anything more than a usb stick....you could try powering it with a USB phone charger to see if thats it?
The headphones themselves are basically an FM radio, and the sennheiser base station is just an FM transmitter, so the fact that you cant 'tune in' and all you get is static...tells me there is something not right there as well, although you have said that it was working with the other telly, so i cant guess what....
Best of luck with this.
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