[FromTheInside]

Originally Posted by BIslander

You need to set the BD player to a bitstream output, which sends a DD 5.1 or DTS track to the receiver for decoding. If you set the player to PCM, you will be limited to stereo because optical only supports two channels of PCM.

From your description, it sounds like your player is sending a stereo signal and your receiver is then applying a mode such as 5 Channel or All Channel Stereo. All Channel stereo sends the same signal to all the speakers, meaning voices appear to originate from everywhere. It's a good mode for background music at a party, but not for much else.

You need to get the proper Dolby or DTS signal sent to your receiver and you need to turn off any processing modes such as All Channel stereo. Then, you'll get the proper discrete 5.1 audio that was recorded on the disc,

You are awesome, thank you very much