How do I get true DD or DTS 5.1 from DVDs? Options

[Spacec0w]

I currently have a Creative SB Live! 5.1, which at the time I thought would make it possible to watch DVDs with true digital sound. Now that I see that their line of speakers (with external decoders) is pretty crappy (i.e. the 5700 which i had looked at), it seems I need another solution. Do I need a soundcard that decodes Dolby Digital (and/or DTS)? Can software actually do it? What soundcards/software/and speakers should I look at then?
Oh, well as to my purpose... I want to set up a hi-fi home theatre around my computer, with my 19inch flat crt and eventually a TV. I am looking to spend no more than, say, 300 dollars on the system.
So I'm sure a lot of you have been through this, and maybe you could help me out? Thanks!

[niktheblak]

Every software DVD player can decode Dolby Digital and at least the Platinum line of WinDVD and PowerDVD can also decode DTS with software.

Basically you have two options. The first is to use the 5.1 analog outputs from your sound card and connect them to three stereo amplifiers with six speakers, six PC multimedia cans, or any combination of those. The other option is getting a 5.1 amplifier with DD and DTS decoding options. Then you can route the DD/DTS signal digitally through your sound card's S/PDIF connectors to the amplifier. Every software DVD player that I know of does support both options.

Naturally the most "high-end" solution would be getting a good 5.1 amplifier, good main speakers, good rear speakers, good center speaker and a good subwoofer (preferably from the same product line of speakers), but it will most certainly cost more than $300.

A budget friendly (but low-end) compromise could possibly be by getting a stereo amplifier and good main speakers, and using cheap PC multimedia cans as rear/center speakers. Thus you could enjoy regular stereo music with decent equipment and still experience surround sound in movies

[Spacec0w]

Thanks, so the answer is definately to get an external decoder? I already decided I didn't want to just use analog outputs, and I didn't really make it clear that I understood that either way you can hear DVDs' digital audio.
And was I correct in understanding that you can use Creative's S-PDIF (aren't these analog?) output to hook it up into a DD 5.1 receiver and get the true digital sound? I had thought the DIN connecter is what was the digital "aspect" (i really know nothing about this stuff) and that it is pretty much just used in Creative products, and therefore essentially useless to me.
So i'm also not limited to PC speakers then right? A regular home audio amplifier (that decodes dolby digital) and speakers would then be my best bet I assume. thanks again...

[niktheblak]

No, S/PDIF is purely digital connector. But there are optical and electrical S/PDIF connections, you have to make sure that the sound card's output connector type matches the one of amplifier's.

The proprietory Creative connector is pretty useless unless you're planning to get those lousy Creative audio systems with external decoder and multimedia cans. Regular 5.1 amplifiers use S/PDIF.

There's just one issue with Creative cards. I'm not sure has creative still fixed the AC3 S/PDIF passthrough issue with Win2k/XP. Someone with more experience on Creative cards could feel this one. On the bottom line, the sound card's drivers must support AC3/DTS passthrough in order to use the digital S/PDIF connector for DVD audio.

And no, you're definetely not limited to PC speakers only. You can use any kind of or combination of speakers you want, provided that they "play well together."

[Spacec0w]

Hey, so now i've decided on an nice (home) dolby digital amplifier/5.1 speaker setup... and i need some, uh, recommendations. Anyone have a nice setup that was under 400 (preferably 300)?? Or can someone point me where to look, other than Best Buy, although I suppose I might as well go there for a listen.
thanks !
moo