Alright,
Disabled Output Format and enabled bitstream via HDMI
The movie played!
I am sending the signal to a soundbar via HDMI that has internal decoders for DTS and Dolby.
All other media programs I have can play all formats (but probably bitstreamed).
Strange, wonder where the problem may be that disallows me to use Output Format (DD) for video.
The other odd part is that I can use Output Format (DD) with audio (music)