Dolby Digital Live - Not Worki

Hi guys,
I am having a few snags with Dolby Digital Li've. I purchased a Creative SoundBlaster X-Fi Titanium Fatalty (Championship Gaming Series) in order to convert audio to Dolby Digital Li've and send it to my home cinema amp. Unfortunately I don't seem to be able to get it to work
I have enabled Dolby Digital Live in the 'Encoder' tab in the Creatiev Audio Console and I have set SPDIF out as the default in Windows Vista Control Panel. The SPDIF output is listed there as 'working' but when I ask it to do a test an error just comes up 'Failed to play test tone'. Interestingly if I try to play a video or audio in Windows Media Player that crashes - I don't get any sound at all.
Games play but with no sound. Set the default back to the Speakers and all is well.
Anyone know how to solve this Am I missing something obvious
My system is:
- Intel Core 2 Quad Extreme Edition QX6700 "LGA775 Kentsfield" 2.66GHz (066FSB)
- Corsair 2GB DDR2 XMS2 Dominator DHX PC2-6400C4 TwinX (2xGB)
- Gigabyte GA_P35_DQ6 (Socket 775) PCI-Express DDR2
- Seagate 600W
- Creative SoundBlaster X-Fi Titanium Fatalty
- XFX 8800 Ultra Extreme 768MB GDDR3 DVI HDTV Out PCI-E
Thanks in advance!

Just as an update I now seem to have the system working 'in game' which is exactly what I wanted. Windows still won't play the test tone and Media Play doesn't like it at all - but Enemy Territory: QUAKE Wars works as do a few other games I've tried.

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