LOL that receiver has PL1, Dolby Digital for movies (in the DVD drive), and Dolby 3 stereo. It's a low end receiver. It has different listening options for each- phantom, wide, etc. It's interesting becuase it's a six channel setup-Dolby Digital, and it uses all five in PL1 decoding mode, but the two surround channels are the same of course. In my fairly good looks-no-issue setup, PL1 isn't that bad. I've played surround sound tests with it and the untrained ear wouldn't notice that the surrounds are mono-just a little more proof that more surround channels are not the way to go (PLIIx, DD Ex). I can't belive 7.1 uses as many, no MORE, surround channels as front channels. Front widths and height channels are the way to go.