Quick question for any Toshiba HD-DVD player-owners.

Commonly the discs are coming with Dolby Digital Plus and DTS formats. I finally got my free HD movies the other day. U-571 is such a movie. When I select the Dolby Digital Plus format from the movie menu, the 1070 will only display/apply DTS formats. Is the 1070 "confused" by the new and improved sound format? My understanding is DD+ is completely compatible with all Dolby decoding receivers, so what's the deal here?

Dolby Digital Plus cannot be output over any digital connection but HDMI - it is not compatible with Dolby Digital receivers and cannot be passed as a bitstream over coaxial or optical cables. For that matter, the HD-A2 cannot pass a DD+ bitstream over HDMI (it has to decode to multichannel PCM). Since you are connected to the 1070, you are using the optical cable. As a result, the 1070 is doing exactly what it is supposed to. The HD-A2 is decoding DD+ internally and then re-encoding as high-bitrate DTS. It will do the same thing with TrueHD tracks.