Nothing will work, including video, mp3, ac3... disable encoding everything back to normal.
However kmplayer & windows media player both working good, sound positionings are correct. Something wrong with PDVD9.
Tested with AC3
http://www.lynnepublishing.com/surround/www_lynnemusic_com_surround_test.ac3
and wmv
http://www.lynnepublishing.com/surround/www_lynnemusic_com_surround_test.wma
Soundcard setting is correct, AVR detects input as "Dolby Digital" when encoding is enable as "Dolby Digital Live". CPU......: i7-975, evga x58 Classified, Kingston 2000 1Gbx3
Display.: GTX285, Dell 2709W
Hdd......: x25M 80Gb x3, iRAM 4Gb
Sound...: Auzentech HTHD, Psyko 5.1, Razer HP1 5.1, Onkyo TX-SR876 AVR