Quote:
Originally Posted by
Mike99TA 
You need to actually clarify whether you're using an ATI 4xxx or 5xxx as this will make a huge difference.
The ATI 5xxx series cards can bitstream full digital 5.1/6.1/7.1 audio to your receiver. The 4xxx cards can't.
Assuming you have an ATI 5xxx series card then it will give you better audio output then anything an optical cable can give you, as long as it's plugged in directly to your receiver. A sound card will not offer you anything unless for some reason you need analog outputs.
What nonsense!!
All ATI video cards from the HD series can do Digital Audio. All of them without exception: the 2,3,4 & 5000 series all pass-through digital audio, the difference is in the type of digital signal. For stereo music it makes no difference whatsoever.
An optical port transmits a SPDIF signal which can also be carried over a Co-Axial connection or a HDMI connection. No difference in quality (well, there's a debate about that); theoretically it is transmitting the same SPDIF signal.
A SPDIF signal can be sent over a Co-Axial, Optical or a HDMI connection.
And SPDIF can carry 5.1/6.1/7.1 channels of (DVD quality) sound. It can also carry up to 2-ch PCM signals.
HD 2/3000 - SPDIF & 2-Ch PCM
HD 4000 - SPDIF & 8-Ch PCM
HD 5000 - SPDIF, 8-Ch PCM & bitstream HD codecs (w/PAP)
And also, there are 2 sound cards with HDMI and they pass video. [1] The Auzentech Hi-Fi Home Theater and [2] The Asus Xonar HDAV (in 3 flavors).
OP,
You are fine with your 4000 card and your Onkyo AVR (once you get it working, that is).
Since your AVR can't decode HD audio there's no point in buying a 5000 card; your 4000 can do the same job as the 5000. It is essentially the same audio chip + PAP.
And your friend is either mistaken or he's talking about a different processing route.
If you have a sound card the audio processing is done within the PC and the sound card's DACs convert the digital signal into analog and send it out. Not the best way to do it.
However in your case, you are using your AVR to do the decoding hence you are sending out the digital signal as it is without any processing being done in the PC. All the processing and conversion is being done in the AVR. An AVR's DACs will (almost) always be better than a sound card's DAC. There are notable exceptions such as the Asus Xonar Essence/Deluxe and a few others.
When all your processing is done by the AVR the quality of sound depends on the AVR; your PC has nothing to do with it.
Quote:
Originally Posted by
steveklein 
I have a friend who is convinced that everything would sound better if I put in a nice PC sound card and used optical audio out.
What's the point? The Optical port is only going to send the digital signal out of the PC; can be done using Co-Axial or HDMI , whichever you already have. Why buy another card for that?
Quote:
Originally Posted by
steveklein 
He says that Dolby Digital can't be passed through HDMI from Windows.
Utter nonsense!
HDMI can pass DD and more. It depends on the audio controller; if the chip can do it then the HDMI spec has enough bandwidth.
Quote:
Originally Posted by
steveklein 
He also says that even things mp3s which are inherently "poor" sources would sound better with the sound card.
Depends on where the processing is being done. If all you are using the sound card is for sending the digital signal, then its not doing the processing, thus making it redundant.
Quote:
Originally Posted by
steveklein 
I just don't buy it though. I'm pretty sure that the signal is passed through HDMI just as good as the sound card he is advocating.
You are right!
Quote:
Originally Posted by
steveklein 
He says that any digital to analog and analog to digital conversions will be superior with the sound card as opposed to just the video card sending the signal.
Again, utter nonsense. The only way you get a better sound in your PC is if your sound card has top-of-the-line DACs and your AVR is crappy.
In your case, your AVR has pretty decent electronics.
For info about
HD (specifically Blu-Ray) audio on a PC read this.