If you put a default surround mode of let's say Dolby Prologic on the DVD input and you change it on the DVD menu to DTS I presume that the 990 is going to automaticly detect the surround mode and change it automaticly is this a correct assumption?
Yes, any audio changes (DD, DTS) you make in your DVD player will be reflected on the 990. I never mess with my 990 for soundfields, except on those rare occasions I want to turn 5 channel stereo on.