Commcat,
In the interest of brevity, I left out some detail that might have misled you. My pre/pro is an NAD T-163. This unit specifically allows the user to select the kind of processing to apply to each input. As such, I have Stereo enabled on the CD input, and Dolby II enabled for the DVD.
So, my expectation of 2 channel performance for the test CD is the same as it is for any other CD - namely, just as if I was using a complete 2 channel setup.
Where the DVD is concerned, the Dolby processing of the audio might make a difference in what I hear, but the source material is not Dolby encoded. As such, with the rear and center channels "dead", if the problem was with the CD player, I would expect there to be a significant difference, with the DVD conforming far closer to my expectations. That it produces an identical location of the dog barking as does the CD player makes me think that the problem lies elsewhere... I hope this is clear.
Jon