PENG - I looked in the manual for my Blu-ray player and I found this. Is this what you are talking about?
[Downmix]
[Surround]: Outputs audio signals with
surround effects. Select this when
connecting an audio device that supports
Dolby Surround (Pro Logic) or DTS
Neo:6.
[Stereo]: Outputs audio signals without
surround effects. Select this when
connecting an audio device that does not
support Dolby Surround (Pro Logic) or
DTS Neo:6.