The PCM/Bitstream option is for how the -digital- DTS data comes out of the digital outputs. You need to change the Speaker Setting to Multi-channel.
To activate the 5.1 outputs for DVD-A, DTS, and DD you need to press the Action button. Select the middle tab: Audio. This is the same place you were toggling the DTS PCM/Bitstream, but the first field on the page is Speaker Setting. Change this to Multi-channel. I'd aldo leave the DTS Digital Surround on Bitstream. The only reason to change it to PCM is if you're trying to play a DTS CD to a DTS surround receiver via a digital connection.
Good luck. I used to have a AVR-3200 too. It was a great receiver.
- Dieter