Max potential for Z-5500 5.1

Hi, I'm not pro with audio but I want max potential from my speakers(Z-5500).
Everyone seems to be fimiliar with Z-5500, so I'll go straight into the questions.
I play Movies, Games and Music quite a lot, but I've seen other forums saying that analog > Digital. I'm not quite sure why's that true to what I've researched. I'm using Digital (optical) atm
For Max Pot, do I need Dolby on my Windows 7? Or need a better sound card? I'm using the onboard sound card of my motherboard (P5Q3 mobo). If I do want best audio. Would I need an upgrade?

If there's a guide I can use, that would be great

Thanks :)
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More about potential 5500
  1. I've had a look at this sound card Asus Xonar HDAV 1.3 Soundcard - PCI-Express Connection, there's no digital output.
    Would I have to use to analog instead?
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