I recently got my hands on an Xbox 1.0 and an X.B.I.T. v1.5. Everything was going good until I tried playing games in 5.1DD. All I hear from it is clicks and pops, then it eventually gives out. All settings in the MS dash are set up correctly. (Dolby Digital: YES, Dolby Surround: YES, DTS:YES)
I've got the Advanced HD pack, checked the optical cable on my DVD player to make sure it works correctly, tried retail and backup games, and tried copying the games to the hard drive. No luck. It is not the receiver, because I've hooked up my 1.6 xbox with the same AV pack and the same optical cable and get perfect 5.1
I pulled the xbit chip and booted the stock firmware, I still have problems. I reinstalled my backup of C:, E:, and F: with no luck, and tried a fresh install of everything. Nada.
I scoured the motherboard for burns or damaged circuits and couldn't find anything.
Audio in XBMC and the MS dash works fine, and if I turn off Dolby Digital, stereo comes thru the optical cable just fine. It only has a problem with 5.1DD.
I'm starting to go a little nuts. I could play everything in 2.0 stereo, but....but.... I just can't give up my 5.1