My receiver has Dolby and DTS support and lights up when either format is used. I have my XB1's audio go through over optical. However, this receiver has slots for 2 sets of speakers, one is for 5.1, one is for stereo. I use stereo speakers since I do not have the space for 5.1 speakers.
If I use Dolby or DTS on XB1, is it for 5.1 audio only? Would my receiver decode it into a 2.0 format? Should I use uncompressed Stereo instead?
Definitely use uncompressed stereo...then it will downmix into stereo...you haven't had issues with not hearing conversation on tv shows? usually they are mixed to center speaker...you may have it set to downmix to stereo on your receiver