added a comment - - edited
If DD5.1 is failing then you will not get menu clicks out either as once you tick "Dolby Digital capable receiver" the clicks are put out as fake DD5.1 (See http://jira.boxee.tv/browse/BOXEE-9752
). In fact any 2 channel signal seems to be put out as DD5.1 once DD capable is selected.
As you said Cole this seems to be related to http://jira.boxee.tv/browse/BOXEE-9761
I have HDMI to LG TV which is used to pass through DD and DTS to Yamaha receiver via optical. Now I get a warning message when I enable DTS capable for HDMI and the same error (failed to initialize) when playing a DTS file. DTS is the only one affected for me. Dolby Digital works fine but it does not give me a warning when I tick it. It does however cause a funny popping sound when boxee loads, moving around so I get a click sound stops the popping noise.
I can understand the warning if the HDMI check says my TV can't handle DTS directly, however it is capable of passing the signal through as it used to do. Is the fail to initialize a rouge message as its not trying anymore because boxee thinks my device is not capable of handling the signal?
Optical direct connection from Boxee to my receiver works fine for DD and DTS.