Is it possible that I'm missing
something on the setup of the player?

Yes.
What amp are you using?
How is it connected? Digital or 6 analog phonos?

--
Eiron.

I'm using the amp built into the subwoofer. Presently connected by 6 phonos
between the DVD Player and the subwoofer. There are also a coaxial digital
out and an optical digital out on the DVD Player. The 5.1 works with a DVD
encoded with 5.1, but not with CD's.

As far as I can see, I've got the setup right on the menus, so I'm rather
puzzled. Would you expect a modern DVD player (even a cheap one) to send
out CD sound encoded in 2.1, rather than 2.0?

Steve