I'm using s/pdif to a receiver hooked up to a 5.1 setup. When I configure the s/pdif connection in windows 7 audio settings, it tests each speakers and the subwoofer individually and they are indeed working just fine.
I remember when playing Oblivion on xbox years ago using this identical audio setup, I could rotate my character in a complete circle and hear the voice of an NPC go from speaker to speaker...front left, front right, then to the rear right, rear left, and back to front left.
I'm not experiencing this in Skyrim at all. I simply can't get voices of NPC's behind me to play out of the rear speakers in anything other than 7 channel stereo setting on my receiver. Am I doing something wrong? Do I need a dedicated sound card? I'm having this problem in battlefield 3 as well!
as I've stated.... PCM stereo is the only format supported through a toslink/optical/coax connection.. you can ONLY have 2 pcm channels.. and almost all games and even youtube treat audio being outputted over a digital connection AS stereo UNLESS they have a built in dolby digital/DTS encoded format.
I've only ever ran into a few games... i couldn't even claim that i couldn't count them on one hand lol.... i think 3.... that with a certain console switch... allowed for dolby digital surround output. One of the games is Counter Strike Source.... i had to set it every time i started the game.. but it was there... It triggered dolby digital 5.1 out to my amps.
Using windows Configuration, and testing the audio WILL work because windows will test dolby digital and DTS 5.1 surround capabilities through a toslink/optical/coax connection. However playback of normal windows sounds and stereo will NOT produce these results, not without using virtual surround option in the windows sound properties... OR via the matrixed audio options on your amp such as Prologic IIx for movies/music/games which only "simulate" surround.. but isn't discrete.
I'm plagued by the same problem.. and short of running 6 individual RCA connectors to the back of the amp so i can enable full anolog audio mode..... kinda screwed.
Least with HDMI audio, it all works great.