I have one of these:
http://www.siig.com/ViewProduct.aspx?pn=JU-IC5112-S2 (SIIG USB SoundWave Optical 5.1) It has 1 toslink connector and 1 minijack. It has a DAC for the minijack, and passes 5.1 sound through the toslink connector. USB installation went smoothly. It uses a built-in Windows driver. My computer is a Dell Latitude D620 running XP Pro. I connected it to my Sony 5.1 receiver (of course through the toslink and not the minijack). The receiver automatically detects the signal, but unfortunately, only detects stereo and not surround. When I set the receiver to surround, it upconverts but still doesn't receive 5.1 channels. In the control panel under sounds and audio devices, I have two options: SigmaTel Audio which is the built-in device on my laptop, and USB Audio which is USB SoundWave device. I select USB Audio. Under advanced, I select 5.1 speakers. I went through all of the menus and could not find any other relevent settings. I play a DVD with 5.1 surround with CinePlayer from Roxio EZCD Creator 9. This player lets you choose the audio playback device as well as the type of sound. I chose USB Audio with 5.1. As far as I can tell, my laptop is sending 2 channels through the USB device. I suspect it's the driver or codec. I have K-Lite Codec Pack installed. I would appreciate any advice. Thanks!