After 2800 mile trip listening to ML, then home to listen to the 2000 Jag, the Jag wins.
Not sure why. More speakers in the Jag and more power but it is not surround.
After reading the above comments about "don't use Surround unless with DVD" I am going to change the settings and go from there.
However, the ML should pick off the two surround channels and give them to us in back.
Bottom for me is I think there are not enough choices on the ML to really make the surround viable. I fiddled with the home surround system quite a bit before I was happy with it but the home system had more options.
Just did the tests......
Turned surround off on XM radio and it was much better. Then,,,,,ML automatically sensed surround sound DVD-Audio when played and switched audio back to surround. Also, seems to recognize CD's with dolby surround encoded and switched to surround automatically.
Once I had it set correctly it switched back and forth on its own correctly.
Apparently, either XM does not send the encoded surround channels on the CD or ML does not decode radio.
DVD-Audio sounded super!!!