nice little DAC for the price.. . win 7 no problems. . .
Item works with win 7. It does not encode Dolby. It only outputs PCM and has it's own surround sound software.
My JVC receiver recognizes the optical output. It has a mini SPDIF optical out which you need a cable for...... Mini SPDIF to regular SPDIF cable was required for me to use it in my application and is readily available pretty cheaply.
If I believe the software driver, it says it will do a SPDIF input on the same connection which is good for audio recording in your favorite DAW recording software. If you have a device that will do optical output such as mic preamp, you can send it into your computer with this device.
It will do 48khz . . I think 24 bit. . .
Overall I like it . . . .It's an inexpensive way to get optical digital to your audio stereo receiver that will accept optical in.. . .Good times.
Oh. . And drivers are still readily available on the zalman website although a CD was included