Hi George,
My impression, was that when using the digital speaker output connectors that the signal passed through was encrypted, which would be of no use to the digital input of the Lavry.
But it works for me that way I've set it up. I also was of the assumption that the HS flag was only valid if you had digital Meridian speakers and a Meridian DVD player via the MHR link connected to the 568.2.
That's why I mentioned that the Lavry could indeed pick up signals being upsampled when the HS flag was checked. I know what the HS flag did but I didn't think it would actually work with the equipment that I was using.
Cheers
Mark.