Sp/dif sound issues, snap crackle pop

[bpot555]

Since the last 2 releases I have been having sound problems. I even bought a new receiver, but I still have issues. There is the really loud sound increase/distortion that happens. Another issue, is that nothing plays in 5.1 Dolby anymore. Netflix used to play in it using sp/dif with the original firmware but not anymore. Also the 7.1 setting in sound are greyed out, even though I have capable equipment.

Does anyone have any ideas? My equipment setup is shown below.

I have an older TV with out HDMI so I need to use SP/DIF for sound. I have a brand new receiver that has HDMI in for video but I output it to the LCD with DVI convertor.

Thanks!

[kerednai]

So what do you have under Settings -> System -> Audio?
Make sure you have SPDIF selected and from there you should be able to select Dolby and DTS. Note some of the options are greyed out as HDMI supports more formats than SPDIF.

[bpot555]

I have spdif selected. I am unable to select the other 7.1 options. Its wierd the Dolby works with live TV now and xbox but not netflix.