AV Receiver settings from PC

[jinxpad]

So I'm hoping that someone on the forum can help me out with this one.

I have my PC currently hooked up to my Yamaha RX-V581 receiver via Toslink from my Essence STX, for when I don't fancy using my headphones.

Currently the SPDIF Out setting is set to PCM, and the setting I have set on my receiver is just STRAIGHT.

My question is; is this set up correctly get the most out of my current setup? Or should I be using one of the DSP settings on my AV receiver?

 

[jinxpad]

You should use bitstream setting on your PC. So when you play Dolby Digital and DTS, the AVR is receiving those audio streams. If you use PCM then it'll lose the discrete audio channels for multi channel and just be stereo.

Straight is a decent mode to use. I have a Yamaha AVR myself with PC system.

So the only other option for SPDIF output is Dolby Digital Live, I should use this instead of PCM?

With regards to my receiver there's a Dolby Surround setting in the DSP, should I use this in conjunction with the Dolby Digital Live mode? Appreciate the help!