DVD Digital Audio Outputs (1 Viewer)

Although I've been running my Home Theatre now for about a year and have never had any problems with the various inputs, I find myself confused all of a sudden.
I purchased the new Digital Video Essentials calibration DVD (which is excellent by the way) to finally calibrate my system (long overdue).
One of the audio tests did not seem to work as expected or as narrated by the DVD.
It was the Speaker Output and Placement test(s).
The first part of the test deals with Stereo, and Left and Right Mains and Center channel.
First of all it said to put my system in "Stereo Mode".
Wasn't sure what that meant because I'm running Digital Optical input from my DVD player (JVC XV-S500) to my Receiver (JVC RX 6010V) No analog input whatsoever.
When the test ran from the left speaker to the right the sound was NOT coming from either of those speakers alone but somewhere in the middle for both tests although when the sound indicated it was back in the "Center" it sounded as such.
I probably got my DVD and/or Receiver settings wrong for the test. I intend to try it again. I was a little rushed when I brought it home.
I read the "Primers" when I first got my system and discovered this site and got everything set up just right.
But because of this test confusion I need some clarifications.

On my DVD Setup Menu is has...

Digital Audio Input
PCM Only
Dolby Digital/PCM
Stream/PCM

My understanding has always been...

PCM Only - Other Digital Device
Dolby Digital/PCM - Dolby Digital Decoder (My receiver)
Stream/PCM - DTS (or MPEG)

Correct?

So what's "Stereo Mode"?
I'm assuming I don't need to touch the "Analog Downmix" setting on the DVD player since I'm not using Analog.
The Receiver does Dolby ProLogic and PLII.
By the way the Audio Tests that come with T2 Ultimate work just fine.

Am I missing something?
Thanks.

you may have to run the red/white composite audio cables (L/R) out of your dvd player also. Then when you turn off surround, it will play in stereo (just as if you didn't have HT).
I'm not familiar with the JVC 6010......Mine is the JVC 8020. Does yours have a button on front that says "surround off"? If so, that's how you will go to stereo mode with the L/R composite cables coming from dvd............If not, you may need to check your manual.
Good luck!

As far as WHY you heard what you heard, I'm not 100% sure. Even with DPL turned on, if a signal was encoded inleft channel only, it should still come from left channel only. Although your description seems a bit hard to understand, as it sounds like you say it came from "center" the whole time, but then go on to say it "returned" to center at the end. Not sure what you actually heard...

Make sure:

If the speaker test shows left channel- and you think it's coming from the middle-- get close and check. You might just have room interactions messing with your imaging-- and you might find it is in fact coming exclusively from the left channel, only from a few feet back it seems more open.

Make sure the sound is NOT coming from the center channel speaker at all-- if it is, you have some sort of DPL processing turned on... and again the point is it be in "stereo only".

-Vince

Sorry for not getting back to you sooner.
First of all, thanks Ed and Vince for the suggestions.
I got the Stereo Demonstration test to work properly this morning.
The solution was a combination of both suggestions.
Ed, your suggestion to press the "Surround Off" button on the front panel of the Receiver put it into Stereo Mode.
But I did not have to connect the Red and White Analog outputs from the DVD player to the Receiver.
Vince, as soon as I was in this mode (making sure I did not have any DPL processing on), the test ran without a hitch.
Sorry about being vague on the "Center" problem.
I think what was happening was that I had DPL processing on and when the test said I should be hearing the sound from "somewhere in the center" it was actually coming out of the Center Speaker and when it drifted left and then right, I was getting a combination of direct center and virtual center sound. That's what threw me off.
Now to have some fun! (Calibration is supposed to be fun, right?)
Thanks again guys.