Both DTS and AC3 work. You need to rip a DTS CD to a WAV file (google
for "DTS WAV ripping" for tips on which tools to use). 

The data in the wav file is not PCM audio - it's a compressed
multichannel encoding so when you play it on the computer or through
squeezebox2, you'll hear garbage out of the analog outputs. 

However, if you connect the digital output to a DTS receiver, the
reciver will decode it in surround sound.

Also FLAC gets about 4:1 compression on those wav files (I forget if
that was for DTS or AC3 though).  The ripped WAVs contain bursts of
data padded by zeroes since the data rate is lower overall than
44.1/16.


-- 
seanadams
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