Many many thanks bkilian, :smile2: as usual. I shall follow your advice, and since my TV is just a Stereo TV -despite featuring technologies like Incredible Surround and Incredible Surround 3D, which sound more like buzzwords than reality- I am going with Uncompressed Stereo set at the Xbox One dashboard and Stereo on the TV. What do you think?Depends on where you want the mixing to happen. I'd say the console might do a better job of mixing to stereo than the TV, since it has more information. Might also be slightly better latency wise. In general, just listen to both, and choose whichever one works best for your setup.
Less lag, better sound. In my tests with Skyrim the Stereo setting on the TV didn't add reverb as Incredible Surround and Incredible Surround 3D did, but some little details of the sound were lost with these last two settings.
I tested this in a cave, opening and closing a chest various times, and some details of the sound seemed to be gone. The reverberation effect is lush, but I don't see the point if you can't hear the sound as clearly, really.