I currently have a 4.1 system. I am completely satisified with the localization and quality of soundtracks when sitting in the "sweetspot" using a phantom center.

I'm planning to upgrade to bluray and a reciever that supports the lossless audio formats. I have read some reports that the lossless tracks aren't handled well with a phantom center. The channel could be dropped or the whole mix downconverted into stereo.

Does anyone have any experience with this?