PS3 Optical Out no 5.1

I have recently purchased an Xtreme audio notebook soundcard, notebook speaker docking module and a 5.1 speaker system all from creative.
I have set everything up and if I play any media that supports 5.1 from my laptop the sound comes out of all 5.1 speakers. However the same media through my PS3 will only output sound to the front left/right, centre and sub, ignoring the rear left/right.
I currently have the PS3 set to output optical 5.1 DTS, this outputs stereo sound to the speakers whether it's a game, DVD or Blu-ray regardless of whether the media supports 5.1 DTS or 5.1 DD. If I set the system to output 5.1 DD I get a nasty fizzing sound from the same media regardless of whether it supported 5.1 DTS or 5.1 DD, selecting both and allowing the PS3 to determine the best output choice returns the same nasty fizzing sound.
It's driving me crazy, I now have to use my laptop to watch DVDs and I can't enjoy my Blu-ray with surround sound.
Any ideas?
Cheers, Joe

OK, strange, but I got it. In the preferences pane, the audio output box was grayed out, but now it isn't- changed the preference.
See, not as sharp on the computer end!

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