No audio out preference in utilites

here is my post in the macbook pro forum
http://discussions.apple.com/message.jspa?messageID=7809239#7809239
well much to my surprise, after i updated to leopard 10.5.4 I now have no control over my output sound. i also have quicktime 7.5. I don't know exactly when this started..since i have reinstalled leopard.
i use my mbp for home theatre purposes..and used to have to switch my audio out when watching dolby digital movies. now i dont have the option at all...completely grayed out in my midi audio settings.
how do i get it back? I think i will have to downgrade to 10.5.2 ( i never had this problem before)
i have sound but i do not have the option of changing any of the properties ie-bit rate or frequency. the audio out portion where this info should be located is greyed out.

Well, there are two things you need to do. For selecting digital out for DVD's and such via DVD Player, you'll need to open that. Go to Preferences and in the Audio area, as opposed to having System Sound Output (make sure your optical out is plugged in of course), select Digital Out. One annoying part, is you'll have to make this change before you watch the movie - just make sure DVD Player is stopped.
Also, when you plug in your TosLink cable, your system sound will be overridden by the sound from the receiver you plug into. To make adjustments, this is a utility. Simply to go Utilities and then "Audio Midi Setup". Really, when you plug in, your laptop system sound is automatically defaulted to be controlled by a receiver in which its plugged into.
Now, anything that is not encoded in AC3 will be outputted in PCM 2CH on a receiver. DVD player will play both Dolby Digital and DTS streams.
In case you are looking for an equalizer for audio purposes, I'm looking for the same and havn't found anything just yet.
Good luck.

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