I have Onkyo TX SR 605 receiver and BDP S300, tested with Pearl Harbor blu ray.

Blu-ray player setting (not movie): audio output to "PCM":
When I watch a movie, it displays Multichannel no matter what audio track I use (DD/Linear PCM). With this PCM setting on the Blu ray player, is uncompressed supposed to have a higher/better bitrate then another setting (say DD)?
I hear that the uncompressed audio track is much better with this setting on blu-ray player.

However, when I set the audio out on the blu-ray player (not in the movie settings) to "Auto":
When I select the DD track on the movie, it displays DD on the receiver, and when I switch over to Linear PCM (now displays multichannel on receiver) to try to hear the difference, I hear that DD is now stronger than with the PCM (multichannel) setting mentioned above.

Is this supposed to sound like this?
Can anyone clarify which setting is best to get the most out of my equipement?

If I use PCM audio output on my BDPS300, and play DD audio track, it still displays multichannel. is the DD track supposed to sound the same whether I use PCM or Auto setting? Because that was not the case as I mentioned and described above

Blu-ray player setting (not movie): audio output to "PCM":
When I watch a movie, it displays Multichannel no matter what audio track I use (DD/Linear PCM). With this PCM setting on the Blu ray player, is uncompressed supposed to have a higher/better bitrate then another setting (say DD)?
I hear that the uncompressed audio track is much better with this setting on blu-ray player.

This is correct...dd will decode to lpcm.

The best thing to do is probably to keep it set at lpcm. Though dont go solely on my advice.

This is correct...dd will decode to lpcm.

The best thing to do is probably to keep it set at lpcm. Though dont go solely on my advice.

So should I decode them to LPCM or is it better quality when DD track for this movie or any movie with the same scenario.

Also, say I have a Blu-ray player that is capable of decoding all lossless tracks, would uncompressed be the way to go then?
I am just asking because I found when my onkyo displayed DD and the movie was on DD (not Linear PCM), it had more UMPH to the guns and bombs and everything in the movie. Slightly better bass from my sub too on the DD track (still says DD on receiver, not multichannel, and still on DD track on the movie)

for peace of mind, I would bitstream dd. From what I can tell, your blu ray player cant decode true hd or bitstream it either. so only on PCM titles will you get lossless.