Right, yes, I'm using HDMI as my digital connectors for both my PS3 and DirecTv HD DVR. I did lots of research as to the benefits of LPCM and bitstreaming, and have chosen to bitstream, as you suggest. With the soundbar, Def Tech recommends using +0 db for the fronts, and I'm running about +7 on the side surrounds. I run +7 also for the rear surrounds. As I said, no issues with 7.1 effects, etc., save for running on DTS HD-MA. When I select to other listening modes that include Dolby Ex or PLIIx, as AVRat suggested, things are fine.