I have updated at least twice and encourage all who buy to run new firmware on all new purchases since the box may have sat a while before you took to a good home theater
Blu-ray Firmware Matters
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Actually the player doesn't downconvert DTS-HD Master Audio to DTS core.The DTS core is already there in the DTS digital bitstream.It's part of DTS' plan to make sure that all of their products are backwards compatible with older legacy converters.Example-on DVD DTS ES 6.1 discreet soundtracks have the back surround channel matrixed into the left and right surround channels for older converters that cannot decode the discreet channel.I was VERY happy to find this out when I got the extended box set of the Lord of the Rings.All of which are in Dolby EX(matrix)and DTS ES 6.1 discreet.My decoder could only play back the matrix version,but I was able to play the DTS in 6.1 because the matrix version was there.I found this information on DTS' website a couple of years ago.