This DVD player, like most available today outputs the DD and DTS signals, and you need a Dolby Digital and DTS "decoder" to decode (or separate and decompress) the datastream so you get the discrete channels of sound. This isn't a failing of the DVD player for NOT having one. In fact, most DVD players that have the decoder built in are pretty poor ones, and in fact NO dvd player has a DTS decoder "built-in" so if you want that, you're better off getting a decoder inside your amplifier anyway. (That's why even my $1000 "reference" Sony S7700 DVD player does not have a decoder built in) If you just want to hook the DVD player up to your TV, you can still just use the dolby surround sound that is standard on EVERY dvd that is made (it's part of the dvd specification).
All in all, this is a very good deal. Anyone that wants to spend $150 on any piece of hi-fi electronics and have it last 10 years (physically and technologically) is kidding themselves. It's a shame about the CDR playback, but you can always buy an inexpensive CD player for that. I too, would not bother wearing down the mechanisms of my DVD player just to play CD's. Seems ludicrous to me...even at $150.