Have everything set-up (M60s, Qs4, Energy Center, and EP350) and have calibrated everything, now have a question regarding the listening modes on receiver. I have Onkyo mid-range (can't remember model off the top of my head), and since getting the new Axioms have been using different sound fields with different sources/formats. But am not sure what is "right". My question is mostly around sources that are 5.1 or higher. I understand that from a 2.0 signal using sound fields create a fictitious 5.1 sound.

If the source is Dolby Digital 5.1, should I set source as "Direct" or "Dolby Digital"? When I set to "Direct" there I can tell there is surround sound (all 5 speakers plus some sub), but when I set to DD there is a lot more bass. The voice is less clear, so depending on the show I move to "Direct". If I set to “Direct”, am I really getting DD 5.1 because that is source? Basically would have same question about a DTS source. Right now I am only using DVD player and FIOS HD. I notice that “Direct” is only way I can watch channels like Golf Channel and CNN where there isn’t much to it. If I watch on DD, there is a hiss from rear speakers which I have thought was a receiver problem trying to create surrounds sound from nothing.

I will be getting a PS3 and will have same question about the sound fields. I understand that I should decode on the PS3 and have it send PCM, but will I just set my receiver to Direct and it will send to “right” speakers?

Sorry, I know this is probably a very basic question that I have complicated…