Originally Posted by Revs
Not quite. If your mobo has an spdif out (optical or coaxial), it can and will output DD or DTS from it. Because the digital signal is not being encoded by the PC, it's already encoded on the disc you're playing. Therefore all your mobo is doing is sending the (pre-encoded) signal down the spdif. All you need is software like PowerDVD that can output using spdif.
VLC, SMPlayer, FFDshow and others will all output DD or DTS through spdif but need more fiddling with to do it than PowerDVD.
I was referring to Dolby Digital Live (DDL)
and DTS Connect. Any digital output on a sound card is capable of outputing a DD or DTS signal to a digital reciever for decoding- but DDL and DTS Connect are used to encode whatever audio is being played back on your PC into 5.1 channels- something not all soundcards can do. It's not on the same level as that of a DVD or what you hear in the theaters, but it's better than what you'd get from Dolby ProLogic.
Upon further research, it seems support for DTS Connect has been dropped as I'm unable to find any real info about it from the DTS website. Interesting.