Gonk
I tested it, it failes When PCM is switched to DD and back to PCM only.
Try using your DVD as a CD player (PCM) then set the preset to upsample. Now use a DD DVD, and note results (switches to DDx, which is ok) then insert a CD again. Now it reverts to PL2
If you leave it on the same input when going from PCM, to DD, to PCM it renderes the Preset useless. Pressing the input botton again does not recall the old upsample setting either, in this case. If you always drive it with PCM, it does retain the setting. (but, the DVD as a cd player would do this, as well a dish network PCM music channels, and DD vidio)
See what I mean?