I have connected my Sony BDP-S350 blu ray player to my 1065 using an HDMI cable. I have set the audio priority to HDMI in the S350, and have told it to output Dolby Surround and DTS. However, the receiver only shows Pro-Logic and the input stream is 2 channel. I don't know if the problem is with the BD player or the receiver.

SOURCE: No Audio when I play Blu-Ray discs with Dolby TrueHD

For dolby digital to work you have to have the optical or coax cable hooked up to the reciever ,The HDMI cable is for digital video and audio output but does not support dolby digital out the cable into your reciever , so just turn off the dolby digital on your reciever and you should hear the sound.
here is more info

Dolby TrueHD is an advanced lossless multi-channel audio codec developed by Dolby Laboratories which is intended primarily for high-definition home-entertainment equipment such as Blu-ray Disc. It is the successor to the AC-3 Dolby Digital surround sound codec which was used as the audio standard for DVD discs. In this application, Dolby TrueHD competes with DTS-HD Master Audio, another lossless codec from Digital Theater System.
Dolby TrueHD uses Meridian Lossless Packing (MLP) as its mathematical basis for compressing audio samples. MLP was used on the earlier DVD-Audio format, but details of TrueHD and DVD-Audio differ substantially. A Dolby TrueHD bitstream can carry up to 14 discrete sound channels. Sample depths up to 24 bits/sample and audio sample rates up to 192 kHz are supported. Like the more common legacy codec Dolby Digital, TrueHD bitstreams carry program metadata. Metadata is separate from the coding format and compressed audio samples, but stores relevant information about the audio waveform. For example, dialog normalization and Dynamic range compression are controlled by metadata embedded in the TrueHD bitstream.

SOURCE: cannot get yamaha rx-v663 to play DDTrueHD or DTS HD audio

If your Blu-Ray player has TrueHD or DTS-MA decoding, then it will send a already-decoded audio signal to your receiver. The receiver should then just recognize this as "Straight" decoding, because it isn't actually doing any decoding.

Hope this helps.

Mike LaPres

• 757 Answers
• Posted on Dec 30, 2009

SOURCE: my denon avr-888 receiver displays

See page 40 of this....http://www.usa.denon.com/AVR-888-OM-E_004.pdf

It indicates that apparently, encoding other than DD or DTS such as found on DVD, will be displayed as you are seeing it now and that is normal. I'm guessing it's a possibility that at the time of production of your receiver there may have not even been a name yet for the hi-def encoding you find on Blu-ray or HD-DVD...the manual does not mention even being able to display DTS-HD and such on it's panel. Also see page 32, section 4.