Hi all, sorry to just disappear on you all, work and life took over 
7.1 via the dual display setup works however as Hornetstinger mentioned there are in fact issues with this.
I haven't had mouse roll off issue (as my 2nd "screen is like 640x480) and most games you can "lock the mouse to the main screen". nor main display going to 1080p however I do have some other annoying issues:
1) When my TV or windows goes into standby, audio drops. which happens ALL the damn time (my OLED TV constantly force's this, even when I game I have to keep the remote next to me to press something every 30-45 mins). Annoying if listening to an album or youtube vid/podcast etc.
2) If my amp goes into standby/off, eg a lot of websites and pretty much anything with audio will not even load the video feed due to an error. Even if I say want just my TV speakers on instead of ya know, paying electric for 8+ speakers and an amp, I can't.
3) Performance hit, albeit small, around 2%.
My mobo has an SPDIF out, so maybe will just use that for the scenarios where I dont want 7.1 or my amp on... so might still be able to finally take the sound card out once and for all!!

7.1 via the dual display setup works however as Hornetstinger mentioned there are in fact issues with this.
I haven't had mouse roll off issue (as my 2nd "screen is like 640x480) and most games you can "lock the mouse to the main screen". nor main display going to 1080p however I do have some other annoying issues:
1) When my TV or windows goes into standby, audio drops. which happens ALL the damn time (my OLED TV constantly force's this, even when I game I have to keep the remote next to me to press something every 30-45 mins). Annoying if listening to an album or youtube vid/podcast etc.
2) If my amp goes into standby/off, eg a lot of websites and pretty much anything with audio will not even load the video feed due to an error. Even if I say want just my TV speakers on instead of ya know, paying electric for 8+ speakers and an amp, I can't.
3) Performance hit, albeit small, around 2%.
My mobo has an SPDIF out, so maybe will just use that for the scenarios where I dont want 7.1 or my amp on... so might still be able to finally take the sound card out once and for all!!