Let's try a couple things. First, write down what the front panel display says when XMen 2 is playing with the Dolby Digital 5.1 track. I'm wondering if we're getting DD and Pro Logic IIx extensions or if it acting as if it's just getting a PCM stereo input. Second, check your DVD player's menus to see if there is a choice for DTS output - many players have a (stupid) option of outputting DTS as PCM or as a bitstream, and the only way a DTS output will work is if it is set to bitstream. It sounds like your player's DTS output is set to PCM. For that matter, if there's a choice for Dolby Digital output as PCM or bitstream, it will also need to be on bitstream - if it is set to PCM, you will get a stereo signal no matter what, and the 1070 would only offer Pro Logic II processing.