PCM 2.0 Down-conversion: "Surround Encoded"

[AllOuttaBubbleGum]

I encountered a problem with the DTS core from a MA track the other day, and had to resort to down-converting to two channel PCM over Toslink in an attempt to pump up the dialog a little bit. It worked, and very well. I was getting clear, loud voices and some terrific virtual surround activity via my Sound bar and wondered what role, if any, having the "surround encoded" option selected for the PCM 2.0 was playing in my surprisingly good Pro Logic II expansion of the down-mix.

For the record, I'm using a Panasonic DMP BDT-230 with with DTS/DTSMA bit-streaming turned off, PCM down-conversion turned on (w/a 48kHz sampling frequency)...with "surround encoded" selected.

Does this process utilize any of the multi-channel surround information in creating a mono surround track akin to one heard, for example, with dolby surround encoding?

As a down-mix solution, it sounded pretty great.

Thanks in advance for any input on this...