Optimal settings for Polk Audio N1 Soundbar for X1?

Hi guys, can anyone tell me the optimal settings for using the Polk Audi N1 Soundbar for the X1? Right now this is what I have

HDMI Audio - Uncompressed

Optical Audio - Bitstream Out

Bitstream Format - Dobly Digital

Is this the correct setup to be getting the best from my soundbar? Any help would be great, thanks in advance!

:)

 

Soundbars

So I went to the Polk website for spec's on the N1 soundbar. It supports Dolby Digital, so I just changed my X1 settings from Uncompressed stereo to Bitstream out.

 

N1 soundbar not turning off.

I just got the N1 Soundbar from Polk. I've marked in the audio settings for the xbox to turn off my soundbar and have the proper soundbar chosen. The problem is that when I turn the xbox off it doesn't not turn the soundbar off. It will turn it off when
I turn the console back on though. I've turned the soundbar off manually after turning the xbox off, and it will turn the soundbar back on, but it will not turn it off.