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I think the problem is with my DVD player.
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Right. Your DVD has the same problem as my 1st Generation Sony 3000...it does NOT support DTS.
All the Bitstream toggle does is allow for DD to pass through the ditigal output along with PCM.
The good news? Any player made in the last few years, even the $49 Apex units, should pass DTS now, so go one down to your local Best Buy and do the upgrade dance.
BGL