Hmmm... OK, let's step through this and make sure everything is set up correctly. First, the DVD player needs to be set to bitstream (or raw, which is what my Oppo calls it) for all formats. Next, the 950 needs to be set to the digital audio input that the player is connected to (make sure you aren't connecting to coax1 and selecting coax2, for instance). Since the 950 was purchased used, let's also make sure the format lock wasn't turned on by the previous owner. This is covered in page 31 of the manual, but basically you want to hold down a surround mode button (we can use Dolby Digital for this) for five seconds until "DATA FORMAT: ___" appears on the bottom line of the 950's display. Make sure the format is set to "AUTO" there so that it can auto-detect the incoming signal and behave appropriately. Now try both a DVD and a CD and let us know what the display each time it receives a new signal. The top right portion of the display will list the format type (PCM for CD's, DOLBY D for Dolby Digital, DTS for DTS 5.1, or DTS-ES Dscret for DTS ES). The bottom line should say "INPUT TYPE:" on the bottom left and then list the format of the incoming signal - examples would include "48K" for CD's, "3/2.1" for Dolby Digital 5.1 and DTS 5.1, "2/0.0" for Dolby 2.0, or "3/3.1" for DTS ES.

As for the remote, even if it is preprogrammed with a code, you can learn commands to buttons on top of the code. I prefer to learn commands manually for most things when using universal remotes - things like transport controls and numbers typically land in the right places with preprogrammed codes, but other stuff can often wind up in places that seem a bit random.