When I play Directv I see the display changing from dts neo to DD depending on show. When I play a video game it plays in DD. When I play a Blue ray it plays and it shows multi in and when I play a dvd I can either get DTS or DD. Is this what I should be seeing?
yes. that all sounds basically correct. you can actually disconnect the optical cable for the PS3 and probably also the DirecTV box; the audio is coming over the HDMI cable (HDMI carries both audio + video). Everything sounds normal though.
- when it says "dolby digital" or "dts surround" that means it is receiving a 5.1 multichannel signal and decoding it automatically. you can see the lights on the display indicate this -- the boxes lit up on the left side tell you how many input channels
are coming in (it should show 6 boxes for 5.1) and the right side tells you how many output speakers
are getting sound.
- when it says "multich in" from the PS3, that is because the PS3 is set to decode all the audio and output multichannel PCM; this is the correct setting for your setup, just make sure to actually select the hi-rez audio track when you play a Blu-ray (it's often not the default).
- the "DTS Neo" means that it is matrixing surround sound from a 2-channel input. you will notice that there are only two boxes on the left side (indicated a stereo 2-ch input) and 6 boxes lit on the right (indicating 5.1 output). DTS Neo 6 is one of the ways you can "simulate" 5.1 channel sound from a 2-channel input.
you can always check the input signal by pressing the "status" button, it will say something like "Dolby Digital 3/2/.1" for Dolby Digital 5.1 input... "PCM 3/2/.1" for a multichannel PCM input... "Dolby 2/0/0" for a stereo signal from the cable box... and so forth. but it sounds like everything was setup properly (or is at least still on defaults).
you should really try and get your hand on an Audyssey microphone though and re-do the auto setup; your new room has totally different acoustics, and the speakers really do need to be re-calibrated. For your receiver, you should look for model DM-S205 or DM-S305 microphones on ebay.