How come when I apply the PanHandler (LCRS Matrix Encoder) to my mastered stereo mix everything goes to the center channel?
What you did is convert the stereo image to mono and then placed it in the Center channel. The PanHandler (LCRS Matrix Panner and Encoder) should be used on sound effects and other non-essential sounds. It is not meant to be used on an entire mix like 3D HRTF programs such as QSound or SRS. If you want to expand the stereo image you can try Qsound or SRS. If you to do this without modifying phase you can use our Ambience Extractor, Waves S1, or Cool Edit Pro’s Channel Mixer. You should also monitor using a surround decoder (even an inexpensive one). The decoder can do many things to the surround mix you just won’t hear in stereo. You should also listen to it in mono. In mono anything panned to surrounds is cancelled out.