Gentlemen, 

I bring grave news.  My dealer has informed me that the software upgrade will not, i repeat not solve the issue of PCM via the digital inputs however he has given me a solution and it is as follows.  Each digital input can be duplicated by using the appropiate scart socket to enable use of PCM.  So you plug in your external device as the norm, but use the 5.1 digital input say on AV1 and also use the appropiate AV 1 scart socket as well.  The BV 7 itself will recognize either 5.1 or PCM and it will select either.  5.1 being the primary.  I know this does not solve the problem but at least its a way forward to enable PCM.  Still V-dissapointed with this problem though.

B & O Nutter