DVD settings for PCM
The DVD player's menu has settings for Dolby Digital and DTS which can be set to either 'bitstream' (sometimes labelled 'raw') and 'PCM'.
When set to 'bitstream' the player will not touch the digital data that is read off the disc. It passes it directly out the digital output (either optical or coax). This is the setting to use if you connect the dvd player to a receiver or pre/pro that can decode DD or DTS. This is also the correct setting for playing PCM sources, such as CD - it will send the PCM over the digital output and the receiver will do the D-A conversion before amplifying it and sending the sound to your speakers.
When set to 'PCM', the DVD player will decode the multi-channel DD or DTS and down-mix it to 2 channel PCM. You would use this setting if you use analog cables to connect the dvd player to the receiver (it will undergo D-A conversion to turn the PCM into analog).
Some players also have an additional setting called something like 'PCM Down Conversion' or 'PCM sampling rate'. My Onkyo let's you choose 48 kHz or 96 kHz. Others just say Yes or No (which implies 48 kHz if set to Yes). If set to 96 kHz, then any PCM signal that uses a 96 kHz (or less) sampling rate will be sent untouched over the digital output. If set to 48 kHz (or Yes), the 96 kHz signal will be down-sampled to 48 kHz. If your receiver has 96 kHz or greater capable dacs, set it to 96 kHz or No downsampling; otherwise set it to 48 kHz or Yes for downsampling.