I believe that anything connected via analog bypasses the DSP entirely (there are no ADCs to convert analog to digital for processing, you still get bass management). For digital sources (HDMI or SPDIF / TOSLINK) there is a direct remote button to enable/disable the DSP based EQ, and you can directly switch to stereo processing or cycle through surround modes. If you connect your bluray using both digital and analog you can set up separate sources that you can choose between on the receiver (depending on how you set up the outputs on the player).

Hope that made sense - read through the owners manual for some good details.