Updating my post from yesterday:
I had an issue after I updated my driver to the Windows 7 beta driver on the Auzentech site. My computer failed to reboot. I can't remember the message I got but it was a boot disk type error. I repaired Windows 7 and I was able to reboot once again.
I have also made the observation that even though I can get "Coaxial" to display on my receiver (that was the setting which XP worked fine on for Dolby Digital) it removes the "Coaxial" and just stereo displays.
I reformatted my computer because I thought the repair that I spoke of above might of tangled up the audio settings. This did not produce better results.