Hey guys, thanks for the replies. I think I'm kind of getting it understood, finally. All the BDs I own are in 5.1. However, I rented 3:10 to Yuma and that's when my avr said it was playing 7.1, maybe that's why the shoot out scenes sounded so good.
I can toggle between different surround sound modes on my avr, and some of em mix in PLIIx music or movie and other modes. They all sound pretty darn good too.
I also switched my PS3 from sending the audio content via LPCM to bitstream. I can't really tell a difference, but I guess it does look cool on my avr when it says DTS-HD or Dolby TrueHD, all lit up in sexy red!