So, in device manager I found that the Nvidia Stereo driver somehow got uninstalled with their latest drivers, kinda weird. So, I installed the driver.
Now I was able to get 3D output only by selecting the HDMI 1.4 or Nvidia 3D display options in PDVD, when I select the option for checkerboard, the emiiter turns off and no more 3D, but then the High-Definition option for Bit-Streaming worked. CRAZY!
In the other modes, PCM Decoded by PDVD or High- Definition Pass through, leave me with no sound. This is all very interesting and I spent over 5 hours, trying everything.
So, either 3D with just normal Dolby Digital/DTS pass-through, using the 1.4 HDMI or Nvidia display option
High Definition audio pass-through and no 3D, and using the "Checkerboard option"
<---------Scratches his head