I do not have a CS speaker but I have it turned on on the 1050. My DVD player is connected via optical and set to bitstream. If I play a 5.1 movie, the 1050 displays the word "Digital" and the CS speaker light is OFF. Everything sounds good. If I play HPCOS or Terminator II Ultimate which are encoded in 5.1 EX, the 1050 displays "Digital Surround 6.1" and the CS speaker light is ON. If I hit the "SURR 6.1" button on the 1050, the display returns to "Digital" and the CS light goes OFF but as soon as there is some CS content, these automatically revert to "Digital Surround 6.1" and CS light ON. The HPCOS soundstage is more toward the front than I would expect. If I switch the DVD player from bitstream to PCM, then Prologic decoding is forced and there are no dropouts. This looks like a software problem, the 1050 is correctly detecting the 5.1 EX signal, but there seems to be a missing block of code:
If EX=TRUE) {
do 6.1 decoding
if CS=ON feed the CS speaker else merge the CS signal with the signal for RS and LS}
else {
do 5.1 decoding
endif