Sounds like it needs an auto setting for bitstream. So if you're playing a DTS HD-MA disc and set bitstream to Dolby, it comes out as Dolby Digital? Sounds like your uncompressed mode is your console taking care of unpacking the codec and sending lpcm/pcm to your avr.
If your avr is showing multi-ch in at all pretty sure you're getting lpcm/pcm at that point, whether you can apply another dsp sound mode to it would be separate.
If the 7.1 selection in your console doesn't "know" your avr is only 5.1, I suppose with some discrete 7.1 discs you could get a slightly different output to your surrounds.
Okay, the thread is unraveling a little for me. Multi in only shows up as a selection when I choose uncompressed, then underneath it the choices are multi in + (insert format).
Here's what I get when I select bitstream/dolby in the audio ouput Xbox menu and put war of the worlds in.
The format on the disc is DTS and the avr displays dolby digital(!?).
I do have the Xbox setting Bitstream out, dolby digital. If I select dts on the console then it displays dts in the avr menu, no matter what format the disc is. It makes me choose a format when I select bitstream in the Xbox audio out menu. It's not automatic. It does sound like I'm missing an auto setting, huh? Wouldn't I want to have the Xbox send the untouched signal to my receiver and let it handle everything?
I don't really understand all the packing and unpacking stuff or how it matters. I'd just like to find an auto setting that works. Maybe ms set it up so I just have to go into the Xbox menus and choose the correct format to match the blu ray I want to play... I'm fully prepared to sink to that level of existence if it's necessary.
#FirstWorldProblems