I got it to work on my X3! I have several DTS CDs. (For those too young to remember, before the DVD-Audio and SACD formats came out, DTS was releasing 5.1 DTS CDs. Mainly old quadraphonic releases by artists like the Moody Blues and Paul McCartney, as well as more recent releases, like by Sting. You needed a CD player with a digital out, and surround-sound receiver that could decode DTS.)
Anyway, first I tried just dragging a file to the X3 from a DTS CD (CD tracks/files are in AIFF format). When I played it, the result was the expected white noise. Then I used iTunes to convert a DTS CD track to WAV. Dragged it into the X3, and when I played it, it was music.
As far as I could tell all the music was there (not just the front channels). So it's restricted to the WAV format.
Then I tried it with a 5.1 WAV extracted from a DVD-A (using DVD-Audio extractor). The Mac will play 5.1 WAVs (directly from the hard drive), but iTunes won't play them. The X3 played it fine.
The file was 24/48, a 6:05 minute long piece, 315.1 MB in size. Since the X3 is just folding down the tracks to 2-channels, which doesn't sound as good as the stereo version from the DVD-A, this isn't that useful to me (wasting space for no real benefit), but it's handy to know the X1 and X3 (and I assume the X5) will play any 5.1 WAV files.
And I'm delighted that now the music on my DTS CDs can be made portable! Thanks for discovering this.