Hold on. I have your answer for the first two questions
1. DTS
2. Matrix
I'm sure your other receiver was a Pioneer
This company carries these DSPs. Don't even bother finding them on the NAD; there just isn't! Every brand has its own. NAD didn't put money on bells ans whistles but they made an awesome job for sound quality. Just enjoy your 2-channel music/enhanced stereo/PLII:Music!
As for the PSSS sound from your surround speakers. Are you in the same source? Because each source can carry its own settings. Maybe your CD playback is set on 3.1 like JMO_PWR said. If not, just try to unwire all your receiver and start again from the begining. Check the settings (OSD) for speaker setup --> 2.1, 3.1, 5.1, 6.1, 7.1
Other than that, I think you'll have to contact NAD for that issue (and for the flickering thing as well). Good luck