I have always been under the impression that AC-3 is the term for the general encoding scheme, and that DD is a specific type of encoding under that scheme. Actually, with all the different "flavors" of DD, it's several different specific types of encoding under the general scheme. In any case, Yes, your receiver will decode the output of your DVD player.
Are dolby digital and AC-3 the same?
I'm a bit confused by these 2 terms. I've heard about a difference in bit rates, but that's about all. I currently own a Harman Kardon AVR55 reciever, that does AC-3 decoding, and I would like to use it in my home theater setup. I would like to use the money saved to go out and get 2 additional amps for my system, since the receiver has pre-outs. Also, do most DVD movies come with DD and DTS, or just one of the 2?