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From page 20 of the owner's manual... "NOTE: When the front speakers are set to the LARGE option and the surround mode is set to "Surround Off", or pure two-channel stereo, when an analog signal source is present it will be routed directly from the input to the volume control without...

I've also read that there is no Analog -> Digital conversion if you set the receiver to stereo, fronts to large and no sub. Is this not also correct?