Cliff, I tried Theater Comp. while playing a CD with optical input selected, and "bypass" mode selected, and then went to the system config menu and flipped back and forth between Theater Comp. ON and OFF, and turning it definitely does cut highs. The same effect is seen when "stereo" mode is selected. And, bizarrely enough, the same effect is seen when I choose the analog input for the CD input! The only place I could tell where it did not have an effect was in the 7.1 inputs. So it appears to function on digital signals that are not dolby digital or dts, or even analog signals, but for the 7.1 inputs. I take it this is NOT the way it's supposed to be, right?
Can anyone else confirm this behavior or am I just imagining I hear this effect?
Mark