You are correct. When bitsreaming audio through HDMI to your receiver, that can often be the best way to go since like you said, it's pure digital til it gets converted by your AVR. My experiences were, like you correctly presumed, with a traditional computer setup, ie PC to active speakers (or headphones) via analog connection. That's where a good quality sound card has indeed made a great difference.
I'm also curious what's at play with your setup that's making such a big difference. What model laptop do you have? Perhaps we can help you dive into this mystery a bit further if we knew that.
Thank you for the further reply Montucky.
Good to confirm my interpretation regarding the sound card was on the right path.
The computer (laptop) I'm usually using (and having the audio issue on) is a ASUS 550N JK. It has been upgraded with 16GB of RAM and a 500GB SSD.
I very much appreciate your offer with assistance to troubleshooting the computer side of it however, there are a couple of aspects that might make it a bit more difficult to do so from afar. It might be something that I'll have to do a bit of trial and error on my side first
Reason (a) that computer came with Windows 8 Home. Due to some of the software I use having compatibility issues with Windows Home, I ended up having to have Windows Professional installed. ASUS's BIOS was such that it didn't allow for the Professional version of windows be installed. I had an IT guy work his side of things and he somehow found a BIOS (non ASUS) that did allow for Windows 10 Professional to be installed. This however means that drivers from ASUS website, etc. are not applicable/usable, etc.
Reason (b). I currently have 4 monitors coming off this laptop. 2 of 24" 1920x1200 in portrait on my left, a 43" 4K in landscape in front of me and another 24" 1920x1200 in landscape on my right. I'm feeding the 43" from the laptop mini Displayport, feeding one of the 24" from the laptop HDMI port and the other two 24" monitors I'm feeding from a USB to HDMI adaptor
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Due to reason (a) I'll have to go about the drivers in a more manual method (using Update Driver in Windows Device Manager seems to just be okay as long as it has a working driver rather than the best/most current driver from the manufacturer).
Due to reason (b) I'll have to do some unplugging of the monitors, etc. One aspect that I will want to investigate is if the reason I'm having issues with the audio via HDMI (I had unplugged the monitor from the HDMI port when I was trying the audio through HDMI) is to see if I unplug all monitors from the laptop (i.e. just use the monitor's laptop) would there be an improvement. My GPU driver is current.
At the moment the current configuration is working for work and everything else I need other than the issues with the audio. That being the case and being under a bit of pressure with work I won't get a chance to do the various plugging/unplugging and various driver updates, etc. until the weekend. Plus with now having the application that allows for streaming via HEOS from my desktop, I'm in such as bad way.
I'll let you know what I find out over the weekend when I have tried a few things and might be better able to pinpoint what is/is not the issue from having done some initial elimination of possibilities.
Thanks again!!