Quote:
Originally Posted by Audiophile_At_Birth
Down Sampling?? 
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Not that either.

Downsampling refers to a reduction in the PCM sampling rate. A 96kHz original may be downsampled for output at 48kHz, for example.
I don't know that there's actually a term to describe how Dolby and DTS handle backwards compatibilty. They each output a legacy version of the soundtrack that works with older equipment. You get good old fashioned DD 5.1 and DTS, athough at higher bitrates than you get on DVD. Those legacy encodes are not created on the fly. They are created at the same time that the lossless encoding is done.