Thanks shaithis. I'm using a variety of sources direct from the hard disk. .ts, .mkv, hd xvid encoded with dd5.1 rather than DTS.
I'll play with the setting you mention (after swmbo has finished with the TV). Options are PCM 16, 24, 32 and IEEE Float.
I spoke too soon about the new realtek driver. It's for HD audio only afaics.