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I'll mention the AudioHQ utility that comes with SB Live. In it there is a speaker test where it'll sequentially output sound to each speaker channel (depending on your setup). I think that's also where you specify digital output.
I have a SB Live. I could get my digital out working with my Altec Lansing speakers - a 4/1 system - but not on all four channels. I either got front/rear or left/right sounds; e.g. I get left channel out of both left speakers. I never could attain four seperate channels using the digital output.
I ended up getting a set of Cambridge digital speakers that were made to work with the SB Live card (same company). Those speakers have a special DIN connector for the sound card, and it gives four seperate channels with digital quality.
Hope this helps.
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