Confused about 7.1 Formats


I am a bit confused about all these formats (kind of new to all this). I have been looking at the Anthem AVM20 and the new Krell Showcase coming out soon. The thing is that they are all 7.1 pre/pros -- does this mean I need a seven speaker setup? What would happen if I wanted to watch a DVD such as Gladiator and I have a 5.1 setup for speakers? Will it work properly or will I be missing something. Isn't the DVD encoded with 5.1 so it will only play 5.1, if so is the only reason they call it 7.1 is for when movies start coming out on THX Ultra 2 and the like?

Thanks for all the clarification, just nervous as I am working on a tight budget -- two speakers extra means more $$$.

JPLENHART
jplenhart
I'm not familiar with the particular equipment you describe nor whether there actually is a 7.1 format encoding / decoding scheme. I have a Lexicon processor that uses proprietary signal processing to extract far right and left information that is sent to two additional speakers. Personally, I wouldn't do HT without it, it makes a huge difference.
The 5.1 are all discrete channels. The other higher versions start matrixing the information out of those original. A center rear matrix's the info from the two rears (unless the center rear is actually being recorded as a discrete channel-that I don't know). And 7.1 with two additional surrounds (but no center rear) matrix's the sound from the rears also. I think. Dolby Pro-Logic was only 2 discrete channels with the center and surround matrixed out of those. I think I've seen 8.1 somewhere.
Any new speakers (i.e. channels of info whether or not discrete or matrixed) will need more amps. Upstream at the heart of things I'm not sure on the processer and dvd player compatabilities. But you always have the option of not using the additional channels.