It works best with 5.1 signals, be it standard Dolby Digital or the new lossless HD formats.
It is bascically a sound processing mode, similar to the one that converts 5.1 tracks to 7.1, but for the front. It takes cues/flags from the original sound track and places them in the height speakers, effectly splitting the front left or right stage.
I think it sounds excellent, you wont hear it constantly, but if you have rainfall, a large front end explosion etc. at the front stage it makes the whole front stage much more three dimensional.
I use the full fat QED speaker wire, not the micro stuff, but you could use it I am sure.