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But now when I put in tranformers hd on my new dvd player, my reciever is showing pcm multichannel. Is this what it should be showing?
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Yup, you're fine. Sounds like the player is decoding the DD+ track and sending it as a multichannel digital signal (PCM) to your receiver. Older formats (DD/DTS) can be sent as a bitstream to your Onkyo and displayed as DD/DTS, but by decoding the advanced formats like DD+ and TrueHD in the player, your receiver doesn't need decoding capability (you don't need a new one!), it just needs to accept MC PCM to get the full fidelity of the soundtrack.