i posted on 5dot1 a question,same question here:

anybody know of a converter from optical or coax(from dvd) to 5.1 analog?

can't cost more than new dvd with component out and 5.1 out.if my friend has to buy a new dvd to have 5.1,we both win,i'll buy his (used) because mine only has optical and s-vid(which i have no problem with)but i'll get to upgrade to component(cheap)

What you are describing is a Dolby Digital decoder. I don't know if anybody ever made a standalone decoder, and if they did it's been quite a while.

I'm guessing that your friend's receiver doesn't include digital inputs, but that it has a six channel analog input. If that's the case, he needs to buy a DVD player with a built-in Dolby Digital decoder. Most players that include DVD-Audio support (which forces them to include a 5.1 analog output) will also include Dolby Digital and DTS decoders.

yep,i sold my buddy my old pro-logic receiver,sub,speakers,etc...has 6ch discrete,his dvd does not have 5.1 out.kinda figured a new dvd player would be the cheapest way out.

this is my friend's first system(20 yrs old),he got the itch coming to my house,shoulda seen the grin on his face when i got him all wired up.

another potential outlaw is born!(he's now realizing that the hidden cost;cables,rack,etc.really add up)