Yeah, if the source (dvd) does not encoded DTS info, you can't get DTS sound output. Yamaha receiver detects DD or DTS automotically each time the DVD player shoots out either DD or DTS. If both formats, DD & DTS, are availabe on the DVD, the default is often DD. You need to manually select DTS on Audio setup of the disc or movie. Having selected DTS on the audio setup of the movie, your Yamaha will switch over from DD to DTS if it detects such signal shooting out from your movie. DTS is often not the default setting on the receiver b/c not all movies have DTS. I had the Yamaha RX-V1400. If I left the DD mode on the receiver, when I watch certain movie on premium cable, the Yamaha will detects either it is DD5.1 or DDPLII, if the source is only available in stereo mode. I can hit Stereo button if I get tire of DDPLII. Check with your manual again. If the manual is not clear, spend some time to play around and watch some movies to test it yourself. Good luck.