Boxee box reports receiver does not support DTS when it does.

When playing a .mkv file with DTS audio you receive the error "Failed to initialize audio device. Check your audiosettings".

If you go into settings/system/audio. Choose Digital(HDMI) for audio output. Then put a checkbox next to "DTS capable recieve" you receive the error "Warning: your receiver indicates it does not support DTS bit-streaming".

This is a boxee box connected to an LG 47lc7df TV via hdmi, then an optical cable is run from the TV to a Yamaha YSP-800 soundbar. The TV is capable of passing DTS and DD5.1 from hdmi through the optical out. It works fine with other devices like an Xbox 360 playing a DTS dvd. This worked fine with 1.04 firmware. The problem is new with the 1.1 firmware. Dolby Digital 5.1 still passes through properly and no error is received when checkboxing it under audio settings.

If you hook up the boxee box directly to the receiver and set boxee box to Digital(SPDIF), DTS works correctly.

If you choose Digital(HDMI) and uncheck DTS you receive sound but it is downmixed to Pro logic 2