Having problem with optical out on HD rental movie

Hi all, I just bought an Apple TV for myself for the holidays. I have the optical out going to a DAC then to my stereo, and it works fine for  music, Netflix, and iTunes Radio. However, when I rented a movie via iTunes (The Wolverine), optical out no longer worked. I did get sound through HDMI (and thus through my TV--not great, but usable).
Because this is a pure DAC (no Dolby), I had to turn Dolby Digital to Off to get Netflix to work. I tried Audio Output as both Auto and 16 bit, and neither setting worked. Audio Output = Auto works fine for everything else.
Anybody else have a similar issue? Thanks!

Turning Dolby Digital off shouldn't mean not getting any signal out of optical out. I turned it off when I had problems with Netflix movies, but now Netflix movies are fine. I'm getting sound out of optical out with them, which means that something is converting the sound signal to PCM.
The problem is that the conversion doesn't appear to be happening for iTunes movie rentals for some reason.

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