Well finally getting a hold on all of this (only had it for a day mind you), the Emotiva UMC-1 arrived and as most users reported it is indeed a buggy little unit with a mind of it’s own, believe it comes down to the HDMI handshaking, prior to resetting the UMC-1 and Sony BDPS550 to factory settings the surrounds refused to play and it took a little digging to get the centre channel mixed with the fronts, also the Cirrus chipset is known for a few seconds audio delay (audio dropout) when fast forwarding or pausing etc, but when it’s behaving it does a stellar job with HT.
Using the Apple TV2 I now have 5.1 audio and picture quality looks very good up-scaled to 1080 from the UMC-1, Blu-ray was also great, sound was excellent , the ghost centre was clear and the surrounds are a big step up from running the LR surrounds direct from the Blu-ray player, also finally have proper low frequency impact now that I can access the .1 on the soundtrack, currently I’m using PCM as I’m not too sure my Sony supports DTSHD Master Audio (learning curb?) but I'll get there.
I’ve left the Velodyne SMS-1 in the chain as I have it already configured for my room and just set the crossovers in the UMC-1, sounds fine by me and I am not planning to use the UMC-1’s auto or manual EQ.
Now music, looks like using Direct is still an issue with most AVPs, and not just Emotiva as I’ve read a few posts from Denon, and Integra users with the same dilemma where Direct defeats the sub so it’s impossible to get a feel as stereo mode (which does use the sub) IMO is not as good as the BP25P
For now I’ll just use the balance outputs of BP25P to the 4BSST for critical listening by the Dynaudio Special 25s full range without a sub, not a big deal to flip a few switches on the back of the 4B as long as I do not forget to switch them back and have family members watching a movie wondering why there is no dialogue

or sound up front.