No, source direct does not bypass any speakers, but it does only playback in whatever number of channels it is receiving - ie; if it is a stereo recording, there are no sub and surrounds. If there is a 5.1 signal, that is what you get. It also bypasses tone controls, bass management and processing, though at what level for digital sources, I don't know. With a stereo analog source, it will set your mains to large and no signal will be sent to the sub. What is likely happening in source direct with multi channel material is probably the same thing, but I have been far too busy at work lately to try and figure out what exactly is going on.
John, that's exactly my understanding (such as it is) of what Source Direct does on my 8200. put simply, the source goes directly to whatever speaker/channel it was designed for.
usually, this means that there is no bass management any longer, and all 5 speakers (in a 5.1 setup) are designated "large". only the .1 LFE channel goes to the sub.
I haven't tried this, since my fronts are rated down to 48Hz only and the centre is limited to 70Hz. my view is, you have an SVS, use it...
Well guys since I brought this up in the first place I think I should tell you that I like the sound better on movies with the direct mode engaged. I do have full range speakers in the front and small ones in the surrounds. the sub is aways engaged in direct mode but for some reason the subwoofer seems to be less active, What I mean by that is that there's less signal getting to the sub but at the same time I feel a stronger-tighter base all-together, in fact a better home-theater experience. I also like how you can follow sounds in the distance getting closer and over your head in a more continous and natural way.