I'm probably just confused, being new to this HT business. Here is my setup:
TV: Sony Bravia KDL-46W4100
AVR: Sony HT-DDWG700 (this is a STR-KG700 receiver w/ bundled speakers)
BD: Sony BDP S350
I've got the BD connected w/ HDMI to the TV, and the TV digital optical audio out connected to the AVG optical in. (The AVG doesn't have support HDMI.) (I also have a cable box and mac mini connected via HDMI to the TV)
When I play a DVD on the BDP, everything is great and I get Dolby 5.1 sound displayed on the AVR console.
But when I play a BD on the BDP, I see 'PCM 48' on the AVR, which from my attempt at reading the manual, seems to mean that it's compressed down to 2ch audio.
I changed a setting on the BDP to output bitstream, and this improved things slightly: for example watching the Band of Brothers BD, when it shows the disc title screens I see Dolby Digital on the AVR, but then it goes back to PCM 48 when it plays an episode.
Maybe I'm misunderstanding things and this is what's supposed to be happening, but it seems like I'm getting better sound quality from the DVD than the BD which seems wrong.
Is the BD trying to output some HD Dolby which my AVR doesn't understand and thus reverts to some downmix? (Or because the TV is in the middle, is it the TV receiving the HD Dolby and downmixing to the AVR over optical out?)
Would it help to have the audio connection direct from the BDP to the AVR? (But then I'll need to multiplex the two inputs somehow, since I also want digital optical from the TV for when I'm watching the cable box - is that possible??)