[KenV99]

Thank you so much.

If i delete xbmc, will all my custom menus, movies and such be gone?

And with your xml files, will my receiver be encoding the audio?

If you have edited any of the xml files directly in the Programs (x86)/XBMC/ directory, those will be overwritten (which I doubt that you have done, reading your posts).

To ensure that your receiver DECODES the audio, you need to go into the settings for your audio codec (in this case LAV audio - Start - Programs - LAV Filters - LAV audio configuration).
Check off BitStreaming for any formats that your receiver is capable of decoding.