If your receiver can decode DTS, then you don't need the DVD player to do it provided that you use the optical connection. So, you should be set with either DVD player. If you'll let us know the model number of the DVD player that won't decode DTS, we could check just to make sure.
Both Dolby Digital and DTS will give you multichannel surround. DTS uses less compression than Dolby Digital. Some people have a hard time telling a difference between the two, so I wouldn't worry too much about it. I prefer DTS, but they are pretty close.
EDIT: The .1 is for the low frequency effect (LFE) track, which would be directed to the sub. You can also use the bass management on your receiver (and in some DVD players, as well) to have low frequencies that would normally go to the main speakers either (a) go to the sub instead or (b) go to both the main speakers and the sub. If you have questions about that, just let us know and we'll talk you through it.