Yes, the idea is that those 2 channels contain matrixed surround information. Play the audio through a Pro-logic decoder and you will get 4 channel output. This is the same process used in theaters for Dolby Stereo tracks.
4 channel? No centre speaker?
Sorry, I honestly didn't get it (maybe the only one!). I thought he was referring to a certain number of processors or something else. Thanks for clarifying.
No problem

For the second question : A mono AC3 will play from only the center speaker on a 5.1 system and on both speakers on a stereo system.