speedy2004:
On the Control Pod, you have a choice called Input, here you can select what kind of signal input you get into your speakers, ie Direct (analogue), Coaxial (digital) or Optical (digital), I have both Direct & Coaxial set up.
Then on the "Effect" setting, you also have a selection you can make, with Direct selected you can have Music, Movie, 6 ch Direct, Stereo and Stereo x2.
With Coaxial select you get a choice of Music, Movie, Stereo and Stereo x2 to choose from.
I find for playing music, I get the best sound from having the Coxial and Effect set to "Music", this gives a 5:1 sound, if you ONLY want a traditional "stereo" effect then choose "Stereo".