Vista + X-Fi Platinum + Z5500 = Dolby Digital H

Sorrry if this is a repost but I've looking around for awhile now and getting alot of mixed responses. Alright... I had some time to kick around and I thought I should give Vista another try. So...
I've got Vista Ultimate + X-Fi Platinum + Z5500 and running WinDVD 8 Platinum.
Now the Z5500 has a Dolby Digital decoder/Sound processor built into which I would typically use. However When I go into the WinDVD setup... enabling "Digital (S/PDIF) out to External Processor" is blocked out. I can only choose "Analog Sound Card" in the "Audio Output Configuration" Area.
In the Creative Control panel under "S/PDIF I/O" I have set the "S/PDIF input setting" to "SPDIF Bypass"
Any ideas I use this exact setup on XP and works GREAT. Is this a Driver issue I know that SB doesnt support dolby digital but they say on the website I should be able to get dolby digital at the software level (IE: WinDVD, PowerDVD, etc.)
Just doesnt make sense to me... Because if I can just pass it through the Logitech Console on the Z5500 will handle it.
I have a feeling its probably right underneath my nose and I just cant see it.
Thanks!
Edit: I am using Digital Coax.

Try this,
In vista right click on the audio sound icon and go to
*Playback Devices*
Highlight Spdif and right click on it and select
*Set As Default Device*
then shut the window down and open up your winDVD software and see if SPDIF shows up.
if your still stuck Buy PowerDVD, its far far better.

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