I'm actually working on something similar to what your describing...
In a nutshell, I'm designing a AC-3 to 5.1 channel decoder circuit. What's the difference between my design and the ones you see in 99% of the consumer electronics?
One thing, its going to be EXTREMELY clean, and what I mean by that is its going to be using seperate toroidal transformers for digital and analog section, seperate bridges, a few optioisolators, and the best DAMN DAC/FILTER/OP-AMP combo money can buy. I'm looking at anywhere from $60-$100 per channel, plus about $60 for the power supply components and ac-3 decoder ic.
I figured I'd rather spend $300 on parts and design my own equipment rather than blow $5000 on something that'll sound just about the same, if not worse.
This'll let me connect it to anything that has a ac-3 data stream, including pc sound cards.
Couple this baby to my modd'ed klipsch speaker and heads will turn, mouths will drool. 🙂