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Yamahas typically do have information on their display which indicates a lot more than a blue light does, as indicated by eljay. I believe there's also often an "info" or "display" option (user menu or button on the remote) which allows you to see the information regarding the incoming signal on the OSD. (on screen display) and perhaps on the front panel.
Depending on the incoming signal, you may or may not wish to do further processing with the various DSPs which are usually described in the operating manual.
For example, with a DD2.0 signal, you may wish to invoke Dolby Pro Logic. With DD5.1, no further processing is really required - send the appropriate signals to the appropriate speakers. With two-channel audio, you may wish to listen in "stereo" or you may wish to invoke something like 5-Ch stereo, or one of the various DSPs mimicking various venues.
Depending on the incoming signal, you may or may not wish to do further processing with the various DSPs which are usually described in the operating manual.
For example, with a DD2.0 signal, you may wish to invoke Dolby Pro Logic. With DD5.1, no further processing is really required - send the appropriate signals to the appropriate speakers. With two-channel audio, you may wish to listen in "stereo" or you may wish to invoke something like 5-Ch stereo, or one of the various DSPs mimicking various venues.