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Originally Posted by
generallee 
I am a little confused. I had my LG BD590 set to HDMI DTS recode. When I played a disk my AVR came up indicating DTS and when streaming from Netflix the Denon AVR 2309 CI indicated "Sterio".
DTS Re-encode tells your player to decode the lossless track and then to re-encode it as lossy DTS. Not optimal. Stereo sources are simply passed as stereo regardless of the re-encode setting.
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So I switched the Audio on the LG to HDMI primary pass thru and set the AVR to Cinema mode, when playing Netflix streaming I see the AVR is switched to Dolby PLII 5.1 and when playing a blue ray disk "Traitor" the AVR indicated Dolby Tru HD 5.1. When I looked at the audio setup on the disk Dolby Tru HD 5.1 was the setup.
Primary Pass-through is the way to go for lossless audio. NOTE: Setting the player to PCM would also give you lossless along with secondary audio (menu clicks and PIP commentaries). Using Cinema mode tells the AVR to apply a DSP such as PLII to stereo sources.
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There is no direction as to what sampling frequency the LG should be set up. There are 3 choices but what do I select?
When bitstreaming, the sampling rate doesn't come into play. The LG simply sends whatever is on the disc. Sampling rates come into play when sending PCM. Set it to the highest level your AVR supports.