asus999,
Make sure the receiver is receiving a bitstream 5.1 signal, and that you are set to auto or coax/opt to have the 2600 process it.
The fact you are seeing an L and R only indicates you are only receiving a 2.0 signal, vs. a 5.1 one. The indicators show what's coming in, not going out.
When I get a Dolby Digital signal, that's what's displayed on the unit. If it's a 2.0 signal the unit displays Dolby Pro Logic or PLII. Both Pro Logic and any of the DSP modes will upconvert a 2.0 channel to 5.1, which is what I assume your Sony was doing.