Onkyo 507 No True HD

[dccav]

Vizio VF550XVT
Panasonic DMP-BD60
Onkyo TX-SR507
TWC SA HD-DVR Box
Xbox 360
All HDMI connections

Just hooked up 507 late last night. Can't afford descent speakers right now, so using speakers from old Panasonic 5.1 HTib SC-HT700 (about to order Energy Classic 5.1). Even with old speakers it sounds so much better. But when I play blu ray with Dolby True HD (Transformers) it does not display True HD, and if I scan through listening modes it's not listed. I have True HD set as audio choice on movie set, BD60 HDMI set to bitstream. At 2:00 in the morning I had changed a lot of settings for other things with very helpful info found on this thread, so I'm not sure if it was set up and I changed something or if it ever played in True HD.
Any Ideas?
Oh yeah, it may be because of the speakers I am using, but have volume turned up between 30 and 40. Is this normal? What volume do you use when playing movies?