Did you set PowerDVD to output through SPDIF?
BTW, apparently there is no way to output TrueHD (which I assume you meant by "true dolby digital") and have your receiver decode. There is no digital path for TrueHD on PCs at the moment.
The best that can be done is to send the audio through your analog outputs to your receiver. To do this you will need to buy a retail version of PowerDVD. Even then, its not TrueHD quality but downsampled audio. Various posts say this can provide better sound than what can be acheived using 5.1 DD/DTS through SPDIF. I haven't tried this yet as I don't want to shell out $$ for the retail PowerDVD. There are just too many issues with all available HD playback software to spend hard earned cash.
BTW, apparently there is no way to output TrueHD (which I assume you meant by "true dolby digital") and have your receiver decode. There is no digital path for TrueHD on PCs at the moment.
The best that can be done is to send the audio through your analog outputs to your receiver. To do this you will need to buy a retail version of PowerDVD. Even then, its not TrueHD quality but downsampled audio. Various posts say this can provide better sound than what can be acheived using 5.1 DD/DTS through SPDIF. I haven't tried this yet as I don't want to shell out $$ for the retail PowerDVD. There are just too many issues with all available HD playback software to spend hard earned cash.