Extigy / Altec Lansing ADA885 problem

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I recently purchased an Creative extigy soundcard and a ALtec Lansing ADA885.

The ADA885 supports Dolby digital and has a SPDIF jack. However, I can't seen to get them working with the Extigy. Apparantly, the extigy soundcard treats the ADA885 as sound source from headphones. I can only get it working when I plug it into the headphones jack

Is there a better configuration to optimise the ADA885 or are these 2 pieces of hardware just plain incompatible?... Please enlighten me... thank you
 
In the Extigy control panel have you set it for S/PDIF Passthrough (It's shown in the Extigy section of our Soundcard guide). You might still have it set to perform Dolby Digital decoding.
 
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