NOW you can play movies, and games that are able to do 5.1 (no better) from optical, but its mostly 90% all going to be 2.0 coming from ur pc unless you fake it with dolby live. It even tells you when you turn it on that it makes it 'surround' from 2 ch audio.
When you flip 'dolby digital live, it FAKES surround form 2.0 sources and THATS IT. The only way to get true 5/7.1 is with analog, or HDMI UNCOMPRESSED like from a xbox, and ur pc (depends on factors to get just 5.1 for I have yet to figure out how to get dolbly atmos to work or 7.1 to show up, but can do 5.1 uncompressed all day long through hdmi) off point sorry, but with optical it does but 2.0 and that's it.