Dolby Digital Plus, DTS-HD, and Dolby TrueHD decoding will have to stay in the player (or other source component) at least until HDMI 1.3 is published and hardware is released for it - until then, there is no way to pass a digital bitstream of any of these formats out of the source component. Dolby Digital Plus will produce a standard Dolby Digital track that can be passed over coaxial or optical output, and I suspect that DTS-HD will do the same. That's what they mean by "converted to a standard bitstream format" - the standard format we've been using. Until HDMI 1.3 exists, the only way to get these formats is for the player to either decode the signal and convert it to analog (in which case a 7.1 analog output would deliver it to the receiver or processor) or decode the signal to eight channels of PCM digital audio (in which case it would be carried over the HDMI interface).