dolby IIz and 9 channel quirk

I have a Pioneer SC-65 and Sony BDP-S5100. When I use the auto surround with the WOW disc, and a DTS-HD MA speaker test video, all seven channels work as advertised. However, nothing is output from my front height channels. If I turn on the IIz, they work fine, but then the surround channels are wrong. It no longer uses the surround rear, it only comes out of the surround side. It will play the audio, it just comes out of the wrong speaker. Is there some magical setting I am missing? I have tried the Neo:X and the THX with height settings, all to no avail. It seems whenever the height channel gets added in, it messes the rear channels up.

Thanks in advance.