You've got your Oppo set correctly. If you want to specify the surround mode as Dolby Digital in the input setup screen, you must have a Dolby Digital signal active at the time. I just left it alone and set the mode to what I wanted for each input type the first time I played it (PLIIx-Movie for the rare PCM, DD+PLIIx-Movie for Dolby Digital tracks, DTS+PLIIx-Movie for DTS tracks, and DTS ES for DTS ES tracks).