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if you're not using SPDIF there is no use for Dolby Digital Live. if you used SPDIF, of course the difference is 2-channel vs 6-channel, you decide... based on your siggy, youre using a headphone with dac. in this case DDL is not needed.
i see that you only have Stereo (2-channel) setting available. the rocketfish soundcard does not support Dolby Digital Live or DTS Connect in the first place. i guess it's time to return the card and get a proper one with either DDL or DTSC. the reason is because you're using optical cable...
have you tried using the built-in DTS or Dolby test through the control panel? the test button should play some tone in 5.1 channel format. Alternatively, you can also check the default format your card is running.
if in windows sound config the sound works for all speakers. it should actually work. in foobar2000, try to go view-> visualization -> peak meter. is there 6 bars displayed?
you can always experiment with stereo or 5.1 settings. i personally heard the difference. what dolby says also seems sensible:
for my case, i did not set my windows to 5.1 because the Dolby Headphone option would be replaced by Dolby ProLogic IIx. hence i only set 5.1 for the in-game / movie...
one more thing:
try to set the game / movie / application audio output to 5.1 speakers. Dolby headphone will then downmix it to the stereo with extra channels added. that's how it really works. if you set it to stereo, then the DH only upmix it to create faux-surround effect without having...
i wouldn't bother with soundcard either. but if you like your current setup i would try to see if i can get a good deal on 5 satellites upgrade. it would definitely improve your Z5300.
unless your onboard is completely crappy, I'd agree with 450. a dedicated soundcard will give you better performance and some extra gimmicks, but upgrading the X540 is what I'd do first.
thumbs up for megaworks and klipsch. if you want, you can try upgrading the satellites first. the RSX-3 from the Klipsch iFi is far better than the satellites in Klipsch Promedia 2.1.
z cinemas are not bad, if they're sold at clearance price (around Z2300 price) but the iFi is far superior in terms of sound and overall usability. Z Cinema has a flawed USB circuitry which discourage some users especially if they're not some tech-savvy - from stuttering bass, limited volume...
some later nvidia and ati cards have this SPDIF pin that allows you to stream the audio even through the DVI-HDMI adapter. unfortunately your HD2600 does not seems to support this feature.
if you're running Windows 7 do check the "communication" tab in the sounds in control panel. by default it is set to reduce volume if a call activity is detected.
what do you mean by no analog outputs? afaik all soundcard have analog output for your pre-amp, just not in RCA shape. so you want one soundcard which outputs 5.1 surround sound to the promedia ultra 5.1 and stereo sound to your pre-amp simultaneously?