Jester, I do have a Monster HTS-5000. I use it even though I doubt it's really necessary. I originally had it plugged into the Pre Amp outlet (with Analog filtering). I tried the Digital filter, as you suggested, but it didn't help. I used the Kung-Fu channel for testing. Analog filter, Digital filter, or directly into the wall (on a dedicated 20 amp circuit) all produced the same results. Both PLIIx and DD EX would re-route the side surrounds to the backs (as described by Sanjay).
Sanjay, then I guess it will require Dolby to fix the problems...maybe PLIII

I wonder if Lexicon's LOGIC7 does a better job?