Audio Output ?

Recently added a Sound Bar to my system, see in specs below, everything seems to be working fine, in the Manual for the SB (page 22) it mentions that the "digital audio output" from either the TV or BD should be set to "bitstream". The BD player (see specs below) is set to "bitstream" with "secondary audio" off, the TV(see specs below) is what ever the default setting from the factory is, I cannot find any info using the OSD TV settings. All the TV programing I have checked so far shows only "Dolby Digital" output, I did this by holding down the "input" (tv) button on the SB remote and the corresponding "LED" lights up.

Does this all sound correct ?

Would I only see the DTS Digital Surround "LED" light up when using the BD player with a disc that has been DTS encoded ?

This is all new to me and I am just trying to understand how and why things work !

BluRay Player (Panasonic DMP-BDT110)
TV is Panasonic TC-P42ST30
Panasonic SC-HTB520 Sound Bar

I have HDMI cables connecting all the equipment i.e. - stb > tv, bd > sb, sb(arc) > tv(arc) - Viera Link- enabled / tv speakers- off

Any insight will be appreciated !!!

Thanks

Thank you - the above info clears up my questions -

If you don't mind - one more question

When and under what circumstance would I see that PCM is the audio output ??

Thanks

Would someone like to take a stab at this question - all my specs are in "link #1"