Mark,

I can answer some of your questions:

3) X10 DVD Anywhere does not transmit Dolby Digital, the Anywhere only has Composite Video, and 2 L/R Audio.

2) If the video card has S-Video, then there are products available that will convert S-Video to Composite.

1) I think there is a mix-up here. Video card has nothing to do with Audio. Therefore, you shouldn't be looking for Dolby Digital from a video card. Dolby Digital Output (Coax) can be had from SBLive Sound Card. I have a SBLive full version and the daughter card has Digital In/Out and it will transmit AC3 signals to the receiver.

In order to transfer DVD video/audio to another room, you'll need a video card that has Video Out (either S-Video and/or Composite). A sound card that has Digital Output. Of course, you'll also need a software that will decode AC3 properly. I'd recommend to use WinDVD as it's very fast and nice video.

Hope it helps you.

Simon