Has anyone here successfully written any code that will output a signal to a sound card which is encoded with surround sound information that will be decoded by a Dolby reciever? I would like to be able to generate surround sounds "on the fly". I have read some old doc''s detailing a proccess whereby you can output a signal with the inverse of the sample which will decode into the surround channel.. has anyone put this to the test? or come up with other ways to output surround sound info without running the samples through other sound apps first?

DirectSound will do this for you. It will simulate it with some wave-form crossing and blending algorithms and stuff for two speaker systems or in the case that you got a sound card with Surround sound support (Like the "SoundBlaster Live!") it will put everything into there correct channels and volumes for rear speakers and such...

Look in the documentation about DirectSound.
See ya,
Ben