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Manually switching the Delta's S/PDIF out to work with AC3/DTS signals
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When an AC3 or DTS stream is passed on from a DVD Player application to an M-Audio Delta Series card, the Delta card will set the correct operation modes automatically. However, this FAQ describes how to make these settings manually if needed:

This requires the usage of an external AC3 or DTS decoder.

1. Bring up the M-Audio Delta Control Panel and go to the S/PDIF tab.

From here, select the following settings as shown:

2. Use "professional" for the Digital Output Format.

 
3. Click on "Advanced Settings"  

4. Under Professional Format, select "non-Audio" as the data type.

 

5. Now go to the Patchbay/Router tab.

 

6. Under the H/W Out S/PDIF column select "WavOut S/PDIF."

7. The S/PDIF out of your card is now set to send the digital surround stream to your decoder.