Help with X-Fi Titantium and Z-5500 Digital Setup!

OK so here's the deal. I got my Z-5500s in today and started setting them up. I used the 6 channel direct connection first and everything worked out fine. iTunes (mp3), Foobar2000 (flac), and Avatar (MPC with 5.1) worked perfectly fine.

I then decided to try the digital output (S/PDIF - Optical) to the Z-5500. I plugged in an optical cable to the X-Fi (taking note to remove the protection for the ends) and plugged the other end into the Z-5500. The "red light" transferring the data light up its red color on the opposing end of the cable so I know the cable works.

I changed Windows default output to S/PDIF as shown below (my mixer is also shown). Then restarted my computer.




When I booted back into Windows the startup sound did not play. I thought that to be weird so I continued to open up iTunes and play a song. It just froze there at 0 seconds not playing anything (i.e. no sound). My Z-5500 control pod displayed the following:

Input: Optical
Effect: dts Digital

Click to expand...

So I know that it does detect a source. Then the sound started working. But only the windows sounds (i.e. the tings, etc.). iTunes and other media players continue not to work.

Other things to note is that I am using Audio Creation Mode.

Sample rate: 48kHz
Bit-Match enabled
DTS Connect encoder

What am I doing wrong here?

If you're using the encoders (DTS or Dolby Digital), the output should actually be set to Speakers, not SPDIF Out. Sounds unintuitive at first, but the creative control panel actually has no control over the spdif out control in windows, hence it is used only for direct pass-through without any special encoding done by the creative software.

So essentially, if you connect both 6 channel direct and optical to the z-5500, and turn on encoding, you'll get output for both.

If you turn off the encoder, then spdif out will work (again, as direct pass-through).

Set iTunes and the other media players to use the default playback device or SPDIF out. My guess is that its set to Speakers/Creative X-Fi (which is the analog out).