I think I figured it out.
First I connected the speakers to the BC2. Then the AV was suddenly working. However I had to push additional AV Source to activate the Beolab 3s when watching TV. The Speaker 1 2 3 modes were not working though and I wasn't able to control the internal speaker of the BV8 anymore. Listening to CD and Radio while watching TV worked though. I needed to be able to switch the internal speaker off as I am planning to use the Apple TV for now as a music source and I dont want music to come through 3 speakers (intenal BV8 and external Lab 3).
So I switched the speakers back to the TV figuring that there must be a way to get playing a CD while watching TV to work since for most with surround this would be the common setup.
I am guessing the factory defaults for options are 1:1. So I flipped the TV to Option 2 and the BC2 to option 0. Pressing AV Source now allows you to play CD while watching TV. The only thing I can't do is switching to AUX. I think you need an older Beo4 for that as my current one required to push List before the AUX. However that is not critical to me.
I think it might be a very good idea to come up with a document for gold and silver members outlining recommended scenarios for using options and where to connect the speakers and what the benefits and restrictions are of the different scenarios.
I know we have a lot of knowledge about this here in the forum and I am just scratching on the surface of something very complicated.
Cheers
JK
BS9000, BS2300, BC2, BL2500, BL3, Bl2, BS1, BV8, BC4, A8