I posted this on the Mac support forum awhile ago. You are on the right track. This is exactly how I got movies with dolby digital to play through front row / quicktime.http://discussions.apple.com/thread....tart=0#6219879
I had a heck of a time getting movies to play from a file in Quicktime or Front Row with AC3 (Dolby Digital). Last night at close to midnight I finally got it working so I thought I would post how I finally got mine to work.
I am running this on a Macbook running Leopard 10.5.1 and Quicktime Pro 7.3.1. My Macbook is connected to my HK AVR 247 receiver via the optical SPDIF cable (headphone port via adapter) and to my TV via mini-dvi to HDMI.
1.Install Perian from http://perian.org/
Go into preferences and make sure it installed. There is a video on the Perian site giving you step by step directions. Audio ouput of Perian should be set to multi-channel output.
2. Installed Handbrake and ripped a DVD using the AVI video format & codecs of mpeg-4 and ac-3. My DVD obviously was not commercially encrypted. If yours is then you are out of luck unless you know to circumvent it as I will not explain it here. I originally tried using MKV/.264, but my understanding is that there may currently be a problem with the Mac version of the latest release (0.9.1) of Handbrake and MKV files. I may be wrong here, but my experience was that I could not get Mac/HB/MKV to play together.
3. I followed this step by step instruction for enabling AC3 passthrough. http://geekwithfamily.com/2007/07/05...cktime-player/
4. Once the video is ripped to AVI format on my desktop I drag it to Quicktime Pro. Once in there I select "File" then "Save As" and use the "Save as a self contained movie" option. This file is a .mov. I then drag it into iTunes and get the album artwork from Amazon.
5. At this point the movie should be indexed and show up inside of Front Row or be playable inside of iTunes.
6. Your mileage may vary. Sorry if I left anything out.