Yep, if you are going to send the signal digitally to the receiver and let the receiver use a surround mode like Dolby ProLogic IIx to simulate 7.1, then there is no reason to buy the 7.1 card.
As far as selecting the surround processing algorithm, most receivers let you pick one based on the input signal format and will remember it so that the next time it sees the same type of signal it will automatically switch to the mode you used last. You can change it manually at any time too.
For example, on my Onkyo, I leave it set to DPLII Music. If the input signal is analog or DD 2.0, it automatically switches to the DPLII Music mode. I can also manually change it to DPLII Movie or Neo:6 or All Channel Stereo, etc. at any time.