All down to personal taste but for my system I use:-
Dolby PLIIx Cinema overlaid on Dolby 5.1 or DTS movies. If the movie is DTS ES Matrix or Dolby EX I'll also use Dolby PLIIx Cinema. If the movie is DTS ES Discrete I'll use that particular mode. In all cases Audyssey is on. Never thought that much of the Widescreen 7.1 mode to be honest.
For music I'll either use Pure Direct with EQ on Flat or Dolby PLIIx Music with EQ on Flat.
Dolby PLIIx Cinema overlaid on Dolby 5.1 or DTS movies. If the movie is DTS ES Matrix or Dolby EX I'll also use Dolby PLIIx Cinema. If the movie is DTS ES Discrete I'll use that particular mode. In all cases Audyssey is on. Never thought that much of the Widescreen 7.1 mode to be honest.
For music I'll either use Pure Direct with EQ on Flat or Dolby PLIIx Music with EQ on Flat.