I'm trying to do the same... I still didn't find a way to get the result I'm searching for, but you can't take a look at http://www.jakeludington.com/archives/000388.html
and start from there...
Regarding the 5.1, yes, it can be used with 5.1. Both if you just want to have the audio (.wma, best way to encode is using Foobar2k) or audio+video.
Let me know if you find something useful! My mail is betun (at) hotmail.