how to get 5.1 digital (spdif/hdmi) working properly inc. win7 64

for media center edition, and other codec related players:
remove all codecs/matroska etc
ensure uac is turned on (needed for shark007)
install shark007 codec 32 bit (use settings app to reset defaults and recommended)
install shark007 codec 64 bit (reset again using the 64-bit settings app)
in the 32-bit app and 64-bit settings app set "audio tab -> 'use pass-through'
_DO_NOT_SET_ANY_OTHER_SETTINGS

for vlc:
determine if relevant media is 5.1 encoded:
tools -> codec information

set using:
tools -> preferences -> use s-pdif when available
show all settings
audio ->output modules -> win32 waveout extension output
save

reload vlc and media to test!