Tried it with a variety of movies, both on the PC and on the PS3.
On the PC, it isn't possible (at least, not through conventional methods) to enable virtual surround sound. However, movies being played back in Stereo is still very good, very high-fidelity providing of course the source of the audio is properly encoded as well.
On the PS3, watching Blu-Ray movies is spectacular. I actually feel that the Pulse is actually built for movies instead of gaming at some point of my testing, it's damn good. Considering when many Blu-ray movies has their audio lossless.
I don't think the PS3 is processing DTS or DD 7.1 or LPCM 7.1 through the wireless USB connector at all, rather just using DD 5.1 audio as its source and relaying it through.
Blu-ray movies on the PS3 I tested were Batman Begins + The Dark Knight, Inception, and The Expendables with Movie preset and Bass Impact at 30-50%.
Batman Begins & The Dark Knight -
Both movies have heavy dialogue, a lot of ambient noises and a good surmount of action scenes. The Pulse performed remarkably and you know what they say, you can 'feel' the demented voice of Heath Ledger's role as the Joker. Action scenes are impactful, highs and mids are highlighted really well with just a touch thin on lows, the bass wasn't deep enough.
Inception -
Not going to say much about this except I watched this movie simply because of the soundtrack and the sound effects that was used — you shouldn't really watch Inception in any other form other than having an actual Home Theatre setup, but with the Pulse it is an acceptable alternative.
The Expendables -
Only tested the last 15 minutes of the movie for the gunshots and two words would sum it up — effin' brilliant. The Pulse is built for action movies, period.