Chris, you are making this way too complicated. The bottom line is, the Logitech X-350 is designed for the PC and it's contingent multi-channel analog outputs. It is not designed to decode signals from a digital source. The best you can get out of them would be matrixed surround, which is stereo that has been divided into the different channels. Another option is to have a DVD player that has 5.1 analog outputs or pre-outs. From there you can purchase an adaptor to connect the RCA jacks and the 1/8 mini plugs together. If you want surround sound you will have to buy a receiver and another set of speakers or a home theater in a box.