Hi,
I have looked at my HDMI setup on the computer & I have only got "Stereo" as an option. Therefore I would expect you to use the "Surround as you did, simulated 5.1 or 7.1 from the stereo signal.
Digital output is another thing & I cannot look into this option as I do not have any equipment to test the various options.
On saying that I would have thought this was your best option though. 6.1 uplifted to 7.1 sound with the speakers. Pg 44 in the manual.
This is what Dolby Pro Logic II does it takes the 5.1 true sound and up mixes it into 7.1. What comes out of the rear speaker is also heard from the side speakers, its exactly the same sound!
7.1 is totally different again ... what comes out of the rear speaker is totally different to what comes out of the side speakers. I clearly heard the difference when I hooked up the PS3 using a HDMI cable and setting the output of the PS3 to PCM.
Unlike the computers you cant play around with the settings on the PS3 it only asks you what cable your using (in my case HDMI) and then spits out a list on what it can produce. Then according to what you playback (in my case a true 7.1 blu ray movie) it puts out that sound 7.1.
In saying that ... I now know my receiver can do the job and I also know that the HDMI cable can do the job too, so the problem lies at the computer end.
I can set the output in both versions of PowerDVD to PCM but when I play it back ...
Using PowerDVD DX - I only get sound from the front speakers, centre speaker and subs only.
Using PowerDVD 11 - I only get sound from the front speakers, centre speaker, subs and the rear speakers.
The side speakers dont work in both these cases!
So the BIG question is ....
Is it the player?
The player tells me its playing 7.1 when playing back the disc (with both versions)
Is it the motherboard?
I know the sound travels through the motherboard when the disc is played back.
Is it the graghics card?
I get exactly the same results on three different computers ... my laptop, my wifes laptop and of course the desktop which is the computer I'm trying to get working properly.