Onkyo SR600: HELP w/ Digital vs PL2 playback


First off: I'm a bit of a newbie when it comes to the digital home theater age, so forgive my ignorance a bit. I recently purchased the Onkyo SR600. I've connected a PS2 to Video 4, a DVD player to the DVD input and a CD player to the CD input. ALL conections are with optical digital cables only. In the setup menu I had to change the DVD's input from component to Optical 2, but the other connections are correct in their default modes so I didn't have to fool with them. Also in the Input Setup mode, I've set the Digital Format to "ALL" and Digital Format Source to "Surround".
Now here's the problem: I NEVER GET DIGITAL PLAYBACK. The display constantly reads "PCM PRO LOGIC II". I've read similar posts in this forum dealing with the same problem and the responses are usually to select DD or DTS playback from the DVD player or to switch the Digital Out function on the PS2. I've done these and STILL only Pro Logic 2. As for the CD player, it too only outputs PCM, no DD.
What the heck am I doing wrong??? And what the heck is PCM mean anyway?? I know it's Pulse Code Modulation, but is it the same as Dolby Digital?

Welcome to the SR600 Club.
At this point you should spend some time reading the manual. The SR600 is pretty sophisticated.
I dont have my manual in front of me, but, there's no message: "Digital Playback" that I can remember. Dolby Pro Logic II show when any stereo source, including CDs, VHS tapes, TV shows, digital audio files like MP3 and AAC, cassette tapes and FM radio broadcasts like Dolby Digital, Dolby Pro Logic II has stereo surround output.
Look towards the back of the manual, it shows what MODES goes with what source input.
I've had the SR600 for a few weeks and I'm still discovering things that makes it sound more to my likings.
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