Been having this problem on and off. Sometimes it works all well but then sometimes its a nightmare and no matter what I try to do it doesn't work.
Here's the intro :
This is my setup
PC (AMD Phenom II X2 550 3.10 GHz + HD 6800 Card)
AV (Pioneer DV 220KV - which can bit stream DTS and Dolby Digital)
TV (Plasma 50 inch Full HD)
DVI cable from Graphic card to PC Monitor
HDMI cable runs from the Graphic card to AV
HDMI cable from AV to TV
Recently, I upgraded AMD CC to 12.8 version. But the problem existed even with the previous drivers.
I am running a dual monitor setup. Computer monitor is the primary monitor and the plasma being the extended monitor.
I set the XBMC to open on the secondary monitor (TV which is set at 1920 * 1080 resolution).
Coming to the problem :
When I start my PC and switch on the AV half way (sometimes AV is ON even before the PC is booted). When I load XBMC and try to play a file which has DTS or Dolby digital video it plays fine and the AV shows the relevant symbol on the screen.
But sometimes, it comes with the error : Failed to Initialise Audio Device.
Going to the Audio Output settings and changing it to stereo brings the sound but this is not what I want.
So, I try to shutdown XBMC and switch of TV (sometimes the AV) and load XBMC back and it starts to work fine. But this doesn't work always.
Also, when I switch the TV OFF and ON, the AV acts as if its resetting and the DECODER OFF symbol comes on the AV screen and even the PC monitor goes blank and back. Sometimes the AV sets itself back to PCM but on occasions I need to restart the AV.
I checked a few threads here where the advice was to stop the AMD External Events Utility service. This solved the problem of the light on the AV and the PC monitor not to fluctuate when I switch the TV ON and OFF.
But this started another problem where when I switch off the TV the volume icon on the PC comes up with a red cross and decide shows NO AUDIO OUTPUT DEVICE IS INSTALLED
Please let me know if there is a way around this problem.