After arduous research and testing I discovered that my reciever can not accept Linear PCM above 2.0 channel. My reciever can only accept DD 5.1, DTS and Linear PCM 2.0. Therefore, if I disable bitstream and use PCM, no matter what its 2 channel only and thats much worse than what I was getting- DD 5.1/DTS in games/movies etc.However, that is fine with me, Im perfectly ok with lossy DD 5.1. My main problem was that my video files were in AAC audio format, but I think ive found a way to convert AAC to AC-3. Ive sucessfully done it on one movie and ive been partially successfull on two others. Now instead of >play mp4> get 2.0 channel PCM I get >play mp4>get DD 5.1. Much better thanks for all the help, learning all of this audio/video settings/ audio/video decoding has taken several years off of my life. I'll be glad when this is done.