Digital Output: Sets the digital audio signals.
PCM allows the BD-C7900 to do its own internal decoding.
Bitstream Audiophile is used if you have a home theater receiver that has HDMI audio access and built-in Dolby TrueHD/DTS-HD Master decoders.
Bitstream Re-encode is used where there may be both a picture-in-picture commentary or other secondary audio track on a Blu-ray Disc.
PCM Downsampling setting sets the sampling for PCM signals.
Without getting into the "techie" stuff, some home theater receivers can accept a 48Hz sampling rate, while others can accept both a 48Khz or 96KHz sampling rate. The 96Khz rate provides a better result, but you have the option depending on your receiver's capabilities. Also, it depends on the sampling rate used for the disc soundtrack. Check your home theater receiver's user manual for sampling rate capability.
Dynamic Range Control: This evens out audio output levels on standard Dolby Digital tracks so that loud parts are softer and soft parts are louder. If you are bothered by extreme volume changes (such as explosions and crashes) this setting evens out the sound so you don't get as much sonic impact from the differences between soft and loud sounds.
Downmixing Mode: This is used to mix the audio output into fewer channels, which is useful if you are using the two channel analog audio output option. There are two settings: Normal Stereo mixes down all surround sound signals into a two-channel stereo, while Surround Compatible mixes surround sound signals down to two channels, but retains imbedded surround sound cues so that home theater receivers using Dolby Pro Logic, Pro Logic II, or Pro Logic IIx can extract a surround sound image from the two channel information.
DTS Neo:6: This option extracts a surround sound signal form any two channel audio source (such as a standard CD).
HDMI Audio Output: This sets the audio output parameters for the BD-C7900's two HDMI outputs.
Auto If you are only using the main HDMI output, audio and video will be output. If you are using both HDMI outputs, audio will only be output from HDMI output 2.
HDMI 1 and HDMI 2: Use this setting if you want audio output from both HDMI output 1 and HDMI output 2 at the same time.
Audio Sync: If you find that your audio and video signals are out of sync, this setting will allow you to set the audio delay so that the audio and video match up.
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