When to use the Dolby option?

I am currently working on compressing a 720p project for DVDSP. When is it appropriate to use the Dolby audio encoder? People in the FCP forum have been suggesting it for various kinds of projects, it seems, but on page 93 of the Compressor manual, it says you need to have the full 6 channels of audio.
Is there a Dolby option for projects with less than 6 channels? Is there any reason to use Dolby over standard AIFF compression if you don't have 6 channels?
Any help would be greatly appreciated!
Thanks,
Cameron

I believe you're confusing an encoding algorithm (Dolby Digital) with a specific output type (5.1). While used interchangeably by many folks, they are not actually the same thing. Dolby compression in Compressor 2 provides support for only 1 channel (Dolby Digital Mono) all the way up to 7 channels (Dolby Digital 5.1 EX).
The preset included in all of Compressor 2's DVD groups (Dolby 2.0) is meant for more typical 2 channel (stereo or dual mono) audio mixes. (The other Dolby presets are found in the Audio Formats group)
The benefit for Dolby Digital is immense when it comes to space - it produces files (if you're using the standard 192kpbs setting) that are 1/10 the size of your AIFF file. In all but the rarest of cases, Dolby audio is the way to go.
Two important settings that you should adjust, however:
In the Audio tab of the Preset Inspector, alter Dialog Normalization to -31 (effectively neutralizing this feature)
In the Preprocessing tab, alter Compression Type to None
Does that help any?

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