Dolby Digital not working with HDMI passthrough

I want to reopen this issue
http://jira.boxee.tv/browse/BOXEE-9761

I am trying to do HDMI audio pass through meaning

Boxee Box => HDMI => TV => Optical => Audio Audio Receiver

When I go into the Boxee settings => System => Audio and tick Dolby Digital receiver I get an error saying that my receiver is not capable, this may be true that the TV is not a Dolby Digital Receiver but the TV is capable of passthrough and hands off the audio via Optical. Also no sound is played when I try to watch any Movie/TV show with Digital sound. The menu sounds still work, and movies/TV with not 5.1 Dolby Digital or DTS sound still work.

I have tried just about everything I can think of and cannot find a solution even though the other bugs seem to have been closed that report the same issue and I am clearly at a later version.