[SEALBoy]

I am thinking of buying the Skullcandy PLYR 1 headset, primarily for gaming on my PC: http://www.skullcandy.com/plyr-1
 
This headset supports a digital optical input using a Toslink cable. It also supports decoding 7.1 Dolby Digital.
 
I also have a 2.1 speaker system that connects using a 3.5mm jack to my existing sound card.
 
I'd like to have both the headset and speakers connected to my computer at the same time, and then switch the output in Windows depending on what I'm using. Due to this, and also the fact that the Skullcandy PLYR can only do surround sound using a digital input, I want to connect the headset using the Toslink cable. My current sound card does not support Toslink, plus I am due for an upgrade anyways, so I was thinking of picking up a Sound Blaster Z or Zx.
 
My question is - how do I convert the audio output from my PC to 7.1 Dolby Digital? Will the Sound Blaster Z do this for me? Or do I have to use some software to do it?
 
Also, will Toslink support 7.1 or just 5.1 Dolby Digital? If I use the USB connection instead of Toslink, will that make a difference?
 
Any clarification on this will be greatly appreciated. Thanks!

 

[PurpleAngel]

Can't find a manual for the Skullcandy PLYR-1 anywhere, even on Shullcandy web site.

 

[cel4145]

Personally, I wouldn't worry too much about 7.1. Based on this PC Mag review of the PLYR 1, the soundstage created by the headphone is to the sides and an in front, not behind. I can't imagine that 7.1 over 5.1 sound will make any real difference. If a big soundstage is important to you, then a good pair of open stereo headphones like the ATH-AD700 would probably be a better choice.

As for toslink vs. USB, try both and see which works better for you.