Just a FYI- Uncompressed 2 channel PCM data at 48k/16bit takes about 1500kb per second while Dolby 2 channel at 48/16 is less than 200kb per second. That's one of the main reasons it's used.
dolby digital is a format of compressing digital audio, like WMA or MP3. This format can contain between 1 and 6 channels (7 with matrixing). Many dvd titles are dolby 2.0, which basically means stereo using dolby's format to compress the audio. Dolby can also do mono. Some 2.0 titles are...