Definitely an upmix of sorts. The only discrete elements are added sounds for the videos. Too bad, would really enjoy some New Order in real surround.
I think the sound quality varies mainly due to the various sources and productions...
Still, I can see myself playing this occasionally, as I've heard much worse video compilations and there's not much 5.1 stuff in this genre.
I recently found the 2-disc set for cheap and picked it up. The videos themselves range from oddly intriguing to really cringe worthy. The live performance of temptation was almost painful. But there are 1/2 dozen noteworthy tracks worth a repeated look/listen, and some songs actually sound pretty decent for Dolby, if not really discrete. I have not played the second disc which I believe is just a documentary. If you are a fan, and see this "NEW ORDER - ITEM" for under $10 or so it is worth picking up. Just a quick update: The second disc is a documentary intertwined with many of the same videos, all in stereo only, however. For hard core fans (of this band, ahem) only.