is there a digital input button on the Bose Lifetyle system? and is it configured to accept digital input signals? have you configured the xbox? there's just not a lot of people here that own the Lifestyle system. Probably why you're not getting a lot of responses.
on some receivers you have to select analog,digital or optical input for your different audio selections. ie, dvd, cd,md, video 1, etc. be sure that your setting for whatever you have your X-box set to is set for an optical input.
zack
Unregistered guest
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GO to your XBOX dashboard inside the sound or audio options and select Dolby Surrround or 5.1 option. That would be my first place to check. If this option is not selected the XBox will only send stereo sound.