Logic 7
It sounds to me like your source is stereo (or 2-channel). You can, however, expand a stereo signal to all of the channels in a few different ways. First you can set the H/K to 5/7 channel stereo in which a stereo signal is sent to each of the speakers evenly. Or you can use Harman Kardon's proprietary Logic 7 decoding which is similar to Dolby Pro Logic IIx which takes a stereo signal and creates a virtual 5.1/7.1 surround signal by isolating the dialog to the center and spreading the ambient noise to the surrounds. H/K's Logic 7 does a really good job of this. However, to get "true" surround you need source material with discrete 5.1/7.1 channels of audio (DVD, Blu-ray & some cable/satellite programing)