Need help buying correct audio hardware

[pecheckler]

My goal is to output ALL audio from my PC to a VIZIO S4251w-B4 5.1 Soundbar system, and have the audio output recognized as a 5 channel capable playback device (just like my analog connected logitech Z506).

I want to accomplish this one of two ways:

a.) GTX670 HDMI 5.1 out ---> Receiver encodes as Dolby Digital or DTS in real-time ---> Receiver digital optical or digital coaxial out ---> VIZIO S4251w-B4 5.1
b.) PCIe Sound Card encodes ALL PC audio as Dolby Digital or DTS in real time ---> Sound card optical out ---> VIZIO S4251w-B4 5.1​

Either way, I need the playback device (HDMI-receiver connection or SPDIF out) to be recognized by Windows 7 x64 as 5 channel capable device by Windows so games can properly send 5 channel audio.

I believe all I need is to purchase a sound card or a receiver that supports "real-time" Dolby Digital or DTS Digital Surround encoding. I need ALL PC audio to be encoded and transmitted, not just pre-encoded audio "passed through". For example spotify app, browser/flash player, 2 or 5 channels movie downloads, or a PC game with surround sound support (but not Dolby/DTS support). I'm not looking to just "pass-through" already 5.1 DTS/Dolby Live encoded audio (like a DVD 5.1 track via VLC player)... as I can already do that over SPDIF. It's the non-encoded audio I need in 5.1.

Note the VIZIO S4251w-B4 5.1 only has digital optical, digital coaxial, and 2 channel RCA/ 3.5mm aux inputs. Also my TV will auto-down convert any surround signal received via HDMI to 2 channel when its sent out the TVs optical output. Actually Windows just detects the TV as being only 2 channel capable when connected via HDMI.

I already bought a Creative Recon3D fatal1ty professional card and the Dolby Digital Live and DTS Connect Pack which was supposed to be able to accomplish this. However to due Creative's software installation errors and their tech support's inability to reply to e-mails or answer their phones, I will be returning this sound card and never buying their products again.

So far all I've found that claims to accomplish this is the Asus Xonar Essence sound card. http://www.newegg.com/Product/Product.aspx?Item=N82E16829132010

The product description sounds like what I need:

Dolby Digital Live: Dolby Digital Live encodes any audio signal on PC in real-time to Dolby Digital (AC3) 5.1 surround sounds to your home theater environment through one single S/PDIF connection​

However, i'm concerned because its a 4 year old product, and while it does have Windows 7/8 drivers, they do not detail whether the real-time encoding feature still exists. Anyone know? And is there a newer model or less expensive card that can do the same?

And how about a home theater receiver that can accomplish the same? Do receivers with real time encoding exist? In the future (when I have more room to run wires) I'll ditch the Vizio system for decent speakers, but for now i'm looking for any suggestions to get this working. Thanks!

 

[Sycraft]

Receivers don't do Dolby Digtal encoding, only decoding. The point of a receiver is to receive (hence the name) and decode A/V signals and then send them to the playback devices. What you need is a soundcard with Dolby Digital Live and/or DTS Interactive. Creative does have products that work well in my experience, but if you don't wish to use them there are other options. You can find motherboards that will do it. The Intel DZ77GA-70K I have does it. Basically the Realtek chips that most boards use can do it, the company just has to buy a license for it (you can't get it later).

Any sound card with Dolby Digital Live support can do it, including cheap ones, just find one that has the feature.

As for external products with encoding, there's not much out there outside of the professional arena and you don't want to know what that costs.