No, something is wrong with the setup of your receiver or your BD player. Pressed Blu-Ray's
MUST be copy-protected. You can use a burned one or play an AVCHD disc. However, all commercial Blu-Ray's will have AACS protection--even the porn and indy filmmaker discs. It's required by the format.
I can understand your frustration, but there is way too much misinformation going on in this thread. HDMI might be a crippled, buggy, immature connectivity solution, but it can handle 7.1 channels of 192/24 PCM with ease. Obviously, bitstreaming of high res codecs requires HDMI 1.3 or later.
My LG BH200 has a setting for maximum sampling frequency. This is to prevent people from sending 192/24 to TV speakers that might not like such information. The settings are 192, 96 and 48. I
I wish I could find a copy of your Blu-Ray player's manual online.
n/m -- I found it at
http://service.us.panasonic.com/OPERMANPDF/DMPBD35-MUL.PDF
Okay. I found it on page 31. PCM Down Conversion is what Panasonic refers to as dumbing down its maximum sampling frequency. I'm assuming you have PCM Down Conversion off and BD-Video Secondary Audio as Off?
Here's a Blu-Ray disc with multichannel (5.1) 192/24 audio:
http://www.2l.no/epost/news2008may.html