Okay, so I wrote the following before noticing this is an iPad discussion:
My Mom is having this problem. Its really frustrating, because each time she turns on the HTPC, she calls me and I have to walk over and fix this for her. Your method only works if the device being passed the audio isn't capable of processing it, and therefor relies on the PC/XBMC to do the leg-work. Her Receiver can handle Dolby, but not DTS, so I have to start a DTS movie and change the audio, back out, and then she's okay; however, I've noticed that the red speaker remains regardless of the audio setting.
Is there a setting somewhere that's ticked one way or the other that I can change? I have enough to deal with without my (wonderful!) mom calling me every night she gets off work when she wants to watch something. I'm having PC problems of my own that are huge headache (AMD Vision Control Center is making me want to punch a baby), so some help would be GREATLY appreciated. Thank you in advance, and to all those contributing to this awesome program, THANKS
---I hope my problem is still relevant to this discussion. I'm going hunting for another thread now, but I'll start another one if an admin deems the two scenarios unrelated. To me they're pretty much the same..
UPDATE: I downloaded and installed the Eden RC2+HD Audio package, and that seems to have fixed my issue.
http://forum.xbmc.org/showthread.php?tid=139354