DVDFab settings for AppleTV conversion

[qanda]This thread is about the Apple TV, 160GB. Click here to see full specs[/qanda]Using DVDFab (28/07/09) for conversion of DVD to AppleTV format has anyone been able to set it up for proper 5.1 surround conversion and playing on Apple TV? I am using a Soundmatters Slimstage40 running from audio optical out of ATV but each file I have converted using the standard ATV setup, my SS40 only sees PCM format coming in rather than Dolby? Video is fine, just no surround sound.