Help setting up blu-ray audio output corectly (old non HDMI receiver-5.1)

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OEMSH4

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Hey guys need some help, i have been running my setup for a few months and have been wondering if there was a better way of setting up the sound output from my Blu-ray player.

I currently have my Samsung BDP-1600 set to Bitstream (re-encode) output over optical(toslink)
And have run the HDMI cable straight to TV.

Is there a better way of setting this up?  My amp is a Sony STR-DE497 which should handle 96Khz decoding.
My options on the BD player are PCM, Bitstream(re-encode) and Bitstream(Audiophile) --- which is 7.1HD i assume? There is also a PCM down-sampling option with stereo or surround compatible mode- what would that mean?????


Have I set it up correctly as above?
I (GUESS :p) I'm getting 5.1 standard LD output(digital) right ?

All comments welcome ;D
 
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