Dolby Labs is the driving force in theater and DVD audio encoding. They are responsible for the Dolby Surround, Dolby Digital, Dolby Digital EX, and Dolby Pro Logic / Pro Logic II encoding technologies. Dolby Pro Logic/II is a matrix coding technique, where multiple channels of audio can be coded into a single channel, then decoded at playback. The coding process causes significant quality loss for the coded channels, but it’s better than not having those channels at all. The “original” surround sound format was Dolby Surround, which was a 4.0 surround format, where the rear channels were matrix coded into the front channels, so in reality only stereo audio had to be recorded.
Dolby Digital/EX audio you hear in the theaters and the Dolby Surround and Dolby Digital/EX audio you hear on a DVD is stored in the Dolby AC3 compression format. In theaters its stored at a bitrate of 640kbps, on a DVD its usually at 448kbps. Dolby Digital you get on a DVD is usually three front channels and two surround channels, plus a Low Frequency Effects channel, making it 5.1 surround. Dolby Digital EX matrix codes two additional rear channels into the surround channels, thus producing 7.1 surround when properly decoded. If an LFE is present, there should be no low frequency information in the other channels. If you play a Dolby Digital stream with an LFE channel on a system without an LFE channel, the LFE information should be mixed into the left and right channels. When playing audio without an LFE channel on a system with one, a process called bass redirection should redirect low frequency sound to the subwoofer. YMMV, depending on your speaker system.
DTS is an alternate audio encoding format from Dolby Digital AC3. It uses much higher bitrate, between 700-1500kbps, as I recall. Most people agree that this allows DTS to have substantially higher quality than Dolby Digital. DTS stores each channel seperately, so a 5.1 surround DTS file will have, in essence, six mono channels encoded seperately. Dolby Digital AC3 uses channel coupling, which reduces the space required to hold an audio stream, but may negatively effect the channel seperation and phase. This is the major reason why DTS tends to have better audio quality. I’m not sure how DTS ES stores the extra channels of audio data, but I believe it codes it in a similar manner to Dolby Digital EX, by embedding it in some existing channels. I may be wrong, however.
THX is, as you guessed, simply a quality control standard. They certify speakers and sound systems as meeting their quality specifications.
I’ve never heard of Logic 7, sorry.
If you need any further clarification, feel free to ask.