Cannot see Airport Express as an Audio Output option!

Hello All,
Very frustruating.
I bought an AirPort Express hoping to use it as a Audio output device for movies/spotify etc.
Plugged it all in to my reciever (using optical cable) configured it to my TC network.
Opened itunes and the Airplay function is working perfectly. Music is streaming as expected.
However i cannot see the AE in the audio output options (when i "option+click" the speaker icon).
Tearing my hair out as this was the primary reason for purchasing the AE!
any help would be greatly apprecaited.
Tim

Trying to play movies through VLC and stream the Audio component to my AirPort express. Similary use Spotify on my computer and stream the audio component.
I thought i would be able to enable my laptop (Macbook Air) to use the Airport Express as its 'speakers' through selecting it as the output source in System preferences.
However it does not show up in the system preferences at all, what has me stumped is the Airport Express is 100% functional through itunes as well as some third party applications (Airfoil).
Im very confused as other users (from extensive google searching) appear to be able to atleast see the AirPort Express as an output device.
Any help greatly appreciated.

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    Message was edited by: Daniel Shattuck

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