Okay, now I'm confused. I always understood the digital audio limitation on the mini display output to be the result of stepping it down to DVI before bumping it back up to HDMI with an adaptor. Unless there's a mini display-to-HDMI option AND the mini display port is wired for audio, I don't expect anyone will be making a single-port, single-cable solution anytime soon.
In any case, that's not what caught my attention on this thread... I'm still trying to get dolby 5.1 (i.e. AC3 passthrough) to work +at all+ on my audio output with a Toslink adaptor and Quicktime/iTunes. I've noticed that Plex passes AC3 bitstreams over the Toslink without any issues, so I know it's not an Apple hardware limitation. I just don't want to use Plex to watch my movies in 5.1
I've messed around with the output settings nine ways to Sunday, but it's obvious the downconversion to digital stereo is happening in QT long before it ever gets to the hardware. Has anyone heard a good reason yet why AC3 passthrough was disabled in Quicktime and iTunes? It used to work.