Let me make sure I understand what you're trying to accomplish. For style reasons, you're removing all but your from left and right speakers (the M60s) from the system, but you'd like to use some sort of hardware to make it seem like you've got more than two speakers in the room, right?
I have seen some DVD players with virtual surround modes, but to use those, you have to use the analog outputs and not the digital ones. Your Denon receiver's phantom mode helps create a "virtual center" but it won't create virtual surround speakers. There are some receivers that will do virtual surround from digital sources, but the effect isn't very convincing.
Are you sure there's nothing you can do to save your surrounds?
