Hi All
Got a definitive reply from John W, its a combination of the above
The USB input only handles 2 channels , hence 2 In 2 Out -- foolish to expect anything else
However If you use a Coax or Optical 5.1 source in then the Optical/coax OUTPUT sends that 5.1 out
So I was on the right track , but missed the USB 2 channel input. The other problem is my AV amp is a bit aged and does not have HMDI input/output only Coax & Optical
The answer is to have a PC with an optical output that passes 5.1 direct to the amp
Or to have a AV Amp with HDMI in/out so that the sound is passed through the HDMI to the amp and the picture from the amp to the TV (Probably the better route as it will enable Dolby HD I assume)
Bottom line is new hardware either way, I have had to resurrect the Mede8er 1x10003D and run a separate stream for audio (JRiver -> DAC) and video (Mede8er) until I renew hardware.
Mike