How well would this work?

The SB Live is a 4 channel card, but would it output all the correct number of channels encoded in the source (eg. DD dvd) or would it be only 4 channels even with digital out? I think having an external DAC would be great (especially a Denon one) for obvious reasons such as noise and of course the el-crapo DACS on the SB Live.

Also I read something on AVS forum about SB Live having a 5V-PP digital out whereas most digital inputs on receivers are .5V. Is this true, and if so can you get an attenuating cable to correct this?

Basically I'd like to hear from anyone that has such a setup (or similar).....