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DTS Connect is a real-time DTS encoder which encodes every audio source to DTS. This is a convenient method of passing surround sound through S/PDIF without using analog. Please read BD Movies that result in 2-Channel S/PDIF without DTS Connect or DDL.
If you use HD 4850/4870 (or G35, GeForce 8200/8300), then you don't need DTS Connect/DDL as it supports multichannel LPCM over HDMI and hence audio source need not be encoded to DTS.























