I have Dolby Digital, Dolby Digital EX, DTS, DTS ES all working perfect!!!!!
I reinstalled my OS and applied all patches updates to the drivers/dvdplayer ect. Still didn't work.
I did another clean install this time only sticking with an old veriosn of Power DVD + Latest Creative Driver and now the passthrough setting and now the audio is getting to my reciever unmollested.
Now I just have to apply updates one at a time to find out which one "breaks" the SPDIF passthrough. I hope its a dvd plater patch, if its a critical update I am still screwed!