I've had my 1070 for about one month now. While I have been watching movies previously through a 2 channel integrated amp, I was looking to build a system. I listen to music mostly and have a Denon 1930ci connected to the 1070 via digital coax. I have an old 36" analog TV which is connected via component video from the Denon. My cable box is connected to the 1070 via optical cable and S-Video out. I have two Mirage Omnisat v2's as my main speakers and a Def Tech ProSub 80. The Denon is set to send PCM. I had the 1070 set to Dolby Digital for movies and music.

Yesterday, I purchased the Omnisat v2 CC and found that the Dolby Digital setting did not send a signal there, although I thought it would/should. In playing with some of the other modes, I was able to get sound. Given that I have a 3.1 system, what would you recommend my surround mode to be? Thanks for your anticipated help.

not too sure on this one...
but I believe you should send DD and DTS material in bitstream from your dvd player to get more than 2.0..

The Denon must be set to bitstream, not PCM - PCM will cause the player to downmix all surround sources to stereo, making it impossible for the receiver to decode the original bitstream.

Once you have the DVD player set to bitstream, you are best off letting the 1070 automatically go to Dolby Digital for 5.1 soundtracks (Dolby Digital will mix the surround channels into the mains). For 2.0 soundtracks, I'd suggest experimenting with Pro Logic II to get the center involved.