Just received the 1050 and so far I've been much impressed by it's functionality. One question. I love the 2-channel stereo - sounds great. I just bought two Klipsch RS-3's for surrounds and want to utilize them for music as well. What would be the best mode to use them with on the 1050?

Try "Natural" -- many people (myself included) have a hard time finding a surround processing mode on any receiver that makes stereo music sound good in surround, but the Natural mode on the 1050 works fairly well for it.

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Gonk

The "Phantom" mode works pretty well for "2 channel music" and utilizes the surrounds (not center). On Some material the phantom mode tightens up the mix by seeming to use the subwoofer more "deliberately". This is especially true for very fast double bass drumming. It also seems to extend the frequency range a very small amount, however the trade off is an increase in "fatique" and a decrease in "warmth".
I'm not a fan of any of the other DSP modes, which typically add in some delay.

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"Art is not a mirror, but a hammer."

Thanks for your responses - will try the Phantom and Natural modes -