If your DVD player has DD and DTS
digital outputs, that means it does not have an onboard DD or DTS decoder -- it passes the digital audio information directly from the DVD to the 1050, which then decodes the signal. The 1050 has a separate bit of processing (developed by a company called Zoran, as I recall) that works similarly to Dolby Pro-Logic to take the left and right surround signals decoded by the 1050 and extract a surround back channel from them. The 1050 can only use the Surround 6.1 mode with Dolby Digital soundtracks (DTS apparently takes too much processing overhead to also use the Surround 6.1 at the same time) or with six-channel analog inputs.
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