Comment 5 for bug 205717

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Victor Engmark (victor-engmark) wrote : Re: [Hardy] S/Pdif / digital output not available in pulseaudio

The fix is in! http://ubuntuforums.org/showthread.php?p=4451132 worked for me - Playing 5.1 Dolby Digital sound via S/PDIF with hardware mixing right now (DVD in SMplayer and MP3 in Rhythmbox).