How to get Diamond Extreme 7.1 in Natty working

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I am trying to set up the Diamond Extreme 7.1 DDL in Natty. The only thing that works are the analog outputs.

But in order to enjoy movies with DD 5.1 or DTS I need the optical out to function. Another problem is that my old Yamaha receiver doesn't handle DTS directly, so I need either Dolby Digital Live to transform it or ffdshow audio codecs (throughput to spdif only results in noise). And third, I am addicted to DDL to enjoy stereo sources in surround sound. DDL works much better than Dolby Prologic II.

Any idea how to get this working in Natty? At least I need to get the optical out working (though Dolby Digital Live is also very desirable). I tried to set things in alsa mixer but without results. Coming from the Windows side and being new to Ubuntu I really have a hard time to get things working the way I was used to. Is there at least some similar codec pack like ffdshow that I could use in Ubuntu?

Any help would be very appreciated.
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More about diamond extreme natty working
  1. It looks like the HW is supported, but requires some kernel config and possibly some alsa config (see
    , third time's a charm), so use the guide as a rough guide on what to look for in terms of your setup and how to fix it if it's broke
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