I was wondering about decoding and whether it is better to let my AVR or my PC do the decoding. Which is better? Currently i have my Onkyo HT-R395 hooked up to my PC through HDMI and the audio settings on windows set to 5.1 running in PCM or Direct, but i do know if I put window in Stereo I get more surround options from my receiver.
Let your receiver do it. It’s built with that in mind. On your PC it’s a convenience feature that’s likely not even close in ability.