Matt, and others, be aware that there is a difference between "digital cable" and "digital audio" (or "digital audio/video", a la DVD).
Digital cable merely means that the channels are digitally 'modulated', like DSS, which allows for more channels and (theoretically) better signal quality.
Digital audio(/video) refers to the signal contained in the medium, such as CD or DVD, and/or output by the reveiver, player, etc.
You may or may not get DD from the S/PDIF (Sony/Philips Digital InterFace) output, but only a digital medium can contain discrete multi-channel sound, except for multi-track recordings such as 70mm film or multi-channel audio masters.
Larry
www.fineelectricco.com