Right I got it working, went into control panel and then into my creative audio HQ, and there is an SPDIF panel where you can pick what decoder to use for an incoming digital signal. All I had to do what select dolby digital built in SPDIF decode and the go into system, audio settings on my 360 and then select dolby digital. I knew it could be done as the card would not come with an optical in and out on the front fascia and also claim support for dolby digital decoding, anyway thanks for the help guys, loving the 5.1 digital true surround, ooh forgot to say I just have normal creative inspire 5.1 speakers, so there is no optical input thats why I have to go through the pc to get my 5.1, its def worth it crystal clear even at max volume.