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When a DVD offers a DTS 5.1 option I always choose it. My NAD pre/pro converts this to 6.1 (which I achieve using a phantom center and a phantom rear center). A couple of recent DVDs offer a third choice (actually it's the default if you don't do anything) labeled "Optimized for DVD sound; no equalization necessary". Based on the limited A/B testing I have done this seems to sound even better (sweeter, more ambiance) than DTS.
Follow Ups:
I assume what this means is that they have already done the theater/room processing for you. Movies are equalized to be played in huge theaters with massive arrays of speakers, so many receivers compensate for this (it's also part of the THX specification.) The production company has already done this compensation for you, so you don't have to worry about it.
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