Optical (SPDIF) Out not working

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Basics: Abit AA8XE mobo w/7.1 onboard sound and optical in/out connections, with RealTek audio driver.

I have connected the fiber cable from my optical out on the computer to my home theater receiver and assigned the receiver input to the correct optical in. I have also d/l the most recent audio driver for my mobo. Now the issue...I get no sound through my home theater speakers when I play music or movies on the computer. Secondly, when looking at the volume control on the computer I have the SPDIF volume control enabled (so you can see it) however it seems to be "deselected" as I cannot change the volume level and it is not on mute either. From everything I can see both connection wise and software wise the I should be getting optical output...but I'm not or at least I'm not getting any sound from the optical out.

I have tried all I can think, even made sure there wasn't a jumper setting on the mobo I might have missed, but alas nothing has come to light. Any suggestions on where I might try troubleshooting next?
 
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