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I have now been into services on the sky remote then onto sound settings and changed the optical output from dolby digital to normal. I now have the same sound levels coming from hd and non hd channels. Do you think this is problem solved???
Not really. You now won't be getting surround sound when it's transmitted...
The best thing to do is go back to the Dolby D output from the Sky box, then go into the Denon's set-up menu and raise the awkwardly-named 'Input Finction Level' to bring that input up to the same level as the others. See manual p50 - manual available from here if you don't still have it.