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I'm having the following setup due to space / budget constraint.
HTPC -- (HDMI) -- TV -- (Optical S/PDIF) - Yamaha ATS 1010

- AMD Athlon II X4 620 Propus 2.6GHz AM3 95W Quad-Core
- XFX HD-545X-YNH2 Radeon HD 5450 (Cedar) 512MB 64-bit DDR2
- BIOSTAR A770E AM3/AM2+/AM2 AMD 770 ATX AMD Motherboard
- Windows 7 Ultimate 64 bit.
- XBMC Eden Release.
- Catalyst Software Suite 12.4

TV: Panasonic Viera TH-50PX80U

In Windows, when I launch Controls Panel | Sound | ATI HDMI Audio Device | Configure, under "Audio channels", I can only see "Stereo". (I tried Realtek driver, but getting the same result). From what I read in multiple forums, this is because Windows detects the TV's EDID and limits itself to this mode. Therefore using XBMC Eden only this Audio Output settings work: Audio Output: Analog, Speaker Configuration: 2.0.

I'm looking for guidance on how to get the best sound quality out of this set up. I realize this is not much of a system, but still want to maximize the capability smile.gif. Should I get a separate sound card and connect HTPC directly to Yamaha speaker using S/PDIF? Or XBMC Eden / TV is already passing through the audio (limitted to DTS/AC3 from what I read) to the speaker and that's good enough.

Thanks very much for your feedback.