All depends on the source. I have a video game called "Ico" for PS2 very good game and worth checking out but it's in stereo and I love to play that in 7-d theater on my 49tx it's like your in the castle if any one has that game try it with a dsp on you'll love it.
I use Prologic II for 2-channel TV viewing, and plain old stereo for critial music listending. But if I just want something playing in the background as I'm doing stuff around the house I might use PL2 or 7-channel stereo for background music. For DVD's, I use standard DD/DTS, though my pre/pro will automatically extract a back channel (and does a pretty good job of it).