Setup question

@mesch The reason using optical from the cable box is a big deal is that I run Plex more than I ever watch cable..and the cable box doesn't have apps, or specifically the Plex app. I'll play around with different configurations. Dialogue in movies gets muddled for my at times and I often have to turn up the volume on the TV to hear it. I bought my Dad a soundbar that he retired in about 3 days so that's available for use as well. It's an LG with a wireless sub, nothing special.

As far as the PCM output is concerned, I'm fairly new to optical but I thought I had tried all output settings from both Xbox and TV. But now that I know PCM is the specific setting to use, I'll try again.

It's a pretty small room. Something like 14 x 14. The house is a small bungalow so HUGE sound isn't required, but it would be nice to have more clarity as well as sort of "feel" the action in those types of movies.

I agree that dialogue on movies can be lost with high impact movies. Use of a center channel speaker does improve this. A subwoofer does much toward experiencing the 'feel' of action.  One can always use a 5.1 amplifier for a 3.1 system. In your small room you might find that satisfactory. Would allow one to own better L & R speakers for audio. 

Are you playing records yet?

That's distortion and smearing.  Diaologue should be crystal clear, a whisper, just that, and totally discernible.