Coax and optical can only handle 2 channels of PCM audio. To get surround from a PC, you need 5.1 PCM, which you can't do with a single wire.

Confused by terms like Linear PCM 7.1 Ch. 96 kHz, Bitstream and Dynamic Range Control? We help you make all the right audio settings in your PS3 right here.

The audio was set to PCM, changed it to Bitstream and now I'm getting 5.1 Dolby Digital.<BR><BR>Thanks!