What did I do wrong?

Turtlebeach Catalina 7.1 (Optical out) to A/V receiver


I went ahead and installed MCE 2005 which is fine, but I can't seem to get my sound to be anything but 2 channel. If I select 7.1, I get no sound at all and can't even select the Digital out menu. On 5.1 to 2 channel.. all I hear is 2 channel sound.


Things already tried:


Reinstalled drivers

Tried using VIA ENVY drivers instead.

Triple checked settings.


I'm hoping it is something stupid that I'm overlooking. Possibly something I haven't installed. Any and all recommendations will be appreciated. Can't watch any movies like this. I also noticed when I test the speaker setup.. it has the left and right channel backwards.