A:Answer Yes, though I only played atmos on mine (no dts x red box rental discs yet). I have mine hooked up for 7.1 normally, and switch to 5.2 via the configuration option in the menu (when needed). You need two extra speakers for this, though this is a much more cost effective option than the higher cost recievers (my old sc-95 which never worked right).
The 502 is a great reciever, especially given the close out prices. The newer 503 handles the two extra speakers better, but you lose many features (eq for each channel, class d amps) and is double the price. Given the limited source content, I really don't miss the exra two speakers (can only drive 7 at a time instead of 9).