Here is what is wrong. I have hooked my laptop through HDMI to my Asus VH238H Monitor. The sound plays fine through HDMI, but just recently I bought a reciever and my monitor has a SPDIF out so I hooked that with my reciever. Now when I play something the sound is still coming through my monitor. Like here is how it is
Laptop > Hdmi To monitor > Monitor SPDIF out to Reciever/AMP.
I read something about Digital Out is also built into the 3.5mm jack but Im not sure about it because in the realtek audio manager the 3.5 shows up as analog.
Found that the 3.5 jack actually does have an optical output built into it. Dolby Digital now works but now I am having stuttering issues when I am typing and the computer is outputting Dolby Digital Live 5.1