Panny bd55 with onkyo htsr800 question..

[Listos]

I recently managed to track down the new Panasonic Bdp55 and have a quick a couple of questions regarding optimum setup.My reciever is not capabling of decoding DTS and Dolby D HD but my blu ray is..

I have connected the blu ray to my onkyo htsr800 receiver via 7.1 analog cables.My questions are:

1.) Under the Digital audio output option on the player: Do I want to send the signal PCM or bitstream.
2.)Even if I send the signal via analog cables shouldnt the DolbyTruHD icon pop up on my receiver or not?It doesnt but I still think Im getting great sound.
3.) There is an option for "Downmixing".I want to set the option to 1.Stereo? or 2.surround encoded?

Im sure this a lame question but thanks for all the help.I'm a fairly new enthusiast but am becoming addicted.

Samsung hls5086w
Onkyo Ht SR 800 HTIB
Panasonic dmp-bd55k
xbox 360