Dolby Surround with optical out scratches

When I start watching a film in iTunes with Dolby Surround the sound is scratching and it is still not possible to understand a word what they are saying. The audio is transmitted over an optical out and my codec if necessary is Perian.
Thank you for helping!

Just thought I'd jump in and say:
1). Turn on Xbox with no disc in the drive.
2). Go to the 'Settings' menu.
3). Select the 'Audio' menu.
4). There should be an option for Mono, Stereo and Dolby Digital <---Select Dolby Digital.
5). Pop a game in (Halo works best for this ) and enjoy!
Note that some people I know (including myself) have found that the rear speaker come out a bit quiet compared to the front speakers when playing Xbox, so you may need to adjust your speaker set accordingly.
Hope this helps, Kaya.

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