There are currently two DSP's that have bass management settings: Output Format and Room Correction.
Output Format
Like Matt mentioned, this setting only comes into play when you don't already have any information in the subwoofer channel. This would be the case if you are upmixing 2.0 to 5.1. If you already have content, like with a 5.1 or 7.1 source, then this setting is ignored. It uses a 48 db/octave low pass filter for the crossover frequency. It only copies the bass, but it doesn't remove it from the other channels.
Room Correction
This is handles bass management in two situations: 1) when you want to remove bass from other channels for content upmixed from 2.0 to 5.1 or 7.1 and 2) when you want to perform bass management on 5.1 or 7.1 sources.
This gives the option of crossover frequency, high and low pass filter slopes (they aren't labeled, but the top one is high pass filter for each channel and the bottom one is the low pass filter for the subwoofer channel), and whether the bass is removed (really only useful for upmixed sources), moved, or copied.
The Conflict
First, people see bass management settings in Output Format and don't realize that the settings that actually affect 5.1 or 7.1 content are under Room Correction.
Second, if Room Correction is set for Move Bass, like I assume most will use for 5.1 or 7.1 content, then these settings won't work right for upmixed 2.0 content. I suggested a method of integrating both settings earlier in this thread.