Hmm.. odd... I've done all that with mce, and have all the same options (icon in taskbar, using 2 speaker mode to use optical out). I get all my sounds working fine out the optical, and full dd and dts from inside windvd, but just only stereo in mce. mce options allows me to choose speker settings, but has spdif greyed out. Very weird. Not got windvd 7 though, i'm using one that came with the card, version 4 or something low like that. If you can afford the lcd tv, go for it. The quality of DVI over svideo is outstanding and certainly a good move... if you can afford.