My current knowledge says that any stereo signal when fed to PLII compliant system shall get converted to 5.1 channels (of course, when the PLII is switched on).
With this in my mind I had the demo of a panasonic mini compo with PLII facility. It converted an audio CD signal to 5.1 (the PLII logo was glowing in display) but when I tried to do the same with an audio cassette signal, it displayed "error" and continued producing stereo output. Same was true for stereo FM channel too.
My question : Is it correct to say that PLII works on all sort of signals encoded with Dolby Surround (TV shows, VHS etc) but, at the same time, it fails to convert 'analog' stereo signal (as in cassette, FM)? Though it successfully converts 'digital' stereo signal not encoded in Dolby Surround (as in audio CD - not dolby surround encoded but yet digital).