HD-DVD to Dolby Digital? I am using HDMI connections and still can't figure out this PCM thing especially with the newer Hi-Def movies. I have a Sony BDP-S350 Blu-Ray and Toshiba HD-XA2 HD-DVD players. Thanks!
You need to make sure your source components are sending bitstream audio and not PCM. There are settings in the Setup menus for this. I have an XA2 also (sigh), and the info is on page 55 of the user manual: set to AUTO instead of PCM. Can't help you with the S350, but I'm sure there's something similar.