Leave "Surround 6.1" off all the time if you don't have a sixth speaker. The key to avoiding the flag problem is telling the 1050 that the speaker exists, at which point the problem disappears. By not enabling Surround 6.1, there any no changes to the surround channels. You get the 5.1 that you need, without any trouble from the EX encoding problem.

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gonk -- Saloon Links | Pre/Pro Comparison Chart | 950 Review