I have a Panasonic DVD-S77 connected via HDMI to a JVC-HD-56G886; an optical audio cable connects the DVD player to a Harmon Kardan 5.1 receiver.
When I check the settings on the DVD it tells me that the audio output is PCM and 2 channel. Is the receiver converting the sound from 2-channel to 5.1? If not, what should I do differently with the audio connection to the receiver to ensure that I'm getting 5.1 sound (multi channel) output?
You need to go into the DVD players menu and make sure the digital audio output is enabled. Make sure DTS output is also enabled. Because if your audio output is only 2 channel, your reciever will output in a pro-logic mode, which is not 5.1 Digital.