It should be on the setting that you think provides you with the best sound. It is all according to your ears, no one else's!
The question would be...are you really getting dolby digital broadcast out of your TV stations? How is your audio connected to the receiver? Are you using a cable box? Does your cable box have digital audio outputs?
right now i have the red/white/yellow cables hooked to video 1 on my reciever and get sound fine. i have a digital optical out on the tv reviever (pioneer elite 1130) and connected to video 3 digital optical in on the kenwood home theater reciver, but i get no sound out of it when it is on video 3.
still confused, if the dvd is on and the reciever says "dobly digital" in the display, shouldn't the reciever say the same thing when a tv show is broadcast in dolby digital?
Not necessarily. You have to contact your cable service provider to see if they are broadcasting in dolby. The "dolby" overlay on the TV program is pretty much standard if the studio has the original programming in dolby. It does not necessarily mean you are receiving it.
got it. i ran a digital optical cable from the digital out on the cable box to digital in vdeo 3 on the reciever and "dolby digital" shows up on the display.