Panasonic DVD-S47 Dynamic Range Compression

Page 12 of the Panasonic DVD-S47 owners manual
http://service.us.panasonic.com/OPERMANPDF/DVDS47.PDF states that
audio Dynamic Range Compression only works with Dolby Digital. I'm
not sure what this means. Will I be able to use this feature for
rented DVD movies if I connect the DVD player to my TV using the
(analog) L/R audio and video outputs or the S-Video connection? Put
another way, does this feature (and Dolby Digital) only work when one
connects the digital audio output (optical or coaxial) to a receiver
with a Dolby Digital decoder? Page 12 shows two settings for Dolby
Digital: Bitstream and PCM. It also shows that PCM digital output
should be set to "off" when not connected digitally. Am I out of
luck? Can someone please explain this to me?

Thank you,
DaveF

DaveF