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I ordered a Sony BDP-S550 because it does decoding of TrueHD and DTS-HD MA on board and my Sony STR-DG720 does not decode those signals via the bitstream. I currently only have a 5.1 setup running and may not go 7.1 for some time. On BD movies with the HD audio and Dolby Digital 5.1, which is better for me to run? I assume the 5.1 signal would be better since I only have the 5.1 setup. Will my receiver accept the 7.1 signal and convert it to a usable 5.1 signal? I think i read that the receiver would re-mix a 7.1 signal and make it 5.1 if I only had those speakers connected. Anyone have experience with these components? Even if you only have experience with the Sony S350 and TrueHD output, that would be fine too, as long as you have some insight.

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There have been ony two or three BluRay dvds that I know of that have 7.1 TruHD or DTS MA. 5.1 is much more common and the receiver or BluRay player would downmix the 7.1 to 5.1 if it had to. I would not worry about it. If your movie has the choice between standard Dolby digital and one of the uncompressed formats go with the uncompressed format as that still sound better as it will be a higher bit rate than DD and will I believe come through as DTS 5.1
 

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I am very impressedwith the uncompressed audio. The BD's seem to have way more sound information in the surrounds.

I have purchased a few BD's, one being Narnia: Prince Caspion. It is in DTS-HD-MA 7.1 and sends the signal via LPCM and all 7.1 channels show up on the receiver. I am thinking that the answer to my question is: without the suround back channels, it just does not play them. It shows up with boxes over the 5.1 channels and the surround back channels have the channels shown in the receiver display, just with no boxes around them indicating that they are not present. Hopefully this will not take away from the surround effects until I can get the two other surrounds.
 
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