analogue or digital out for 5.1

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hi

this article is a great help showing how to connect my MCE PC to 5.1 AV -
http://www.microsoft.com/windowsxp/using/mce/expert/connect_av.mspx

However, it states that "I would recommend using the digital connection if
the only surround sound you will experience will be when watching DVDs.
However, if you plan to listen to 5.1 encoded Windows Media Audio (WMA) files
or watch Windows Media High Definition Video (WMV-HD) DVDs, I would recommend
using the analog-based connection."

almost everything I will be using it for is either DVDs I have ripped to the
PC or AVI files.

my question is:

does playing AVIs fit into the same catagory as WMA/WMV and if so why is
connecting via analog better?

my current sound card has the analogue outputs but not digital, so i would
need to buy a new one, but is it worth it?

the article states that the anagloue method will mean the decoding will take
place on the sound card, whereas digital will be decoded in the AV. i would
have thought a good AV would be the preferable place to decode

thanks
.



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