I use Dolby PLIIX-C for most of my movies unless the DVD has a DTS. Even then I like to keep the 6th channel running and I don't think the DTS mode on the Outlaw runs the rear channel. Example, Das Boot [Superbit Format] includes both Dolby Digital and DTS. I like playing around with both to hear the differences.

I used Stereo 2.0 for all my music.

Question: is 7 channel stereo even an option for me when my setup is 6.1?
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Model 1070
Toshiba HD-A35 & Pioneer BDP-51
Tivo Series 3
Elite 50" / Aquos 32"
Squeezebox Radio

Stereo Setup:
NAD C326BEE (50Wx2)
Elite DV-47Ai Universal SACD/DVD-A
Citypulse DA7.2x II + TXCO DAC
B&W 685s
JL Fathom F112
Denon AH-D2000 Headphones