I have powerdvd, and it WILL pass DTS straight to the receiver over the S/PDIF output of your sound card if you have the S/PDIF passthrough option selected.
WinDVD does so as well.
If your receiver does not accept DTS, then you'll have to resort to software decoding and use the sound card's 6 analog outputs.
The multichannel version of WinDVD is nice in that it will even software encode Pro Logic II, and use the directsound3D API to output 5.1 over your analog outputs of the card. Even better: If you have an nForce-equipped motherboard with Soundstorm audio, it will again be converted to DD5.1 in hardware, and sent to your HT receiver as DD5.1! Poor man's prologic II encoder/decoder combo.
Caveat: Playing a DTS-encoded CD doesn't usually work with S/PDIF passthrough, because often the sound card drivers do not output the DTS digital stream as 44.1kHz, but instead sends it as a 48kHz stream instead, resulting in squeaky high-pitched audio! You'd have to use the DVD player's builtin software decoder to properly play these DTS CDs. Although, at least with an nforce motherboard, it can be reconverted to DD5.1 (with the associated conversion losses), so you can still avoid an analog setup.
I hope this doesn't sound confusing...the nForce allows you many cool audio playback options...