It will work with any source that is outputting Dolby Digital. My DVD player and my cable box both work. You have to make sure your source devices are set to output DD.
DVD player
Set it to output 'bitstream'. Sometimes there is a single 'digital out' setting and sometimes there are separate settings for DD and DTS.
Cable box
Mine (Scientific Atlanta) has a menu option called 'digital audio out' and it can be set to DD or 'Other' (which reallly means PCM). Most cable boxes are similar - set it to DD.
Computer sound card
This is where it gets tricky as it depends on the capabilities of your card. You have to find the setting that enables digital output for one thing but I assume you've done that if you are connected via a coaxial cable. The card's control panel may also have a setting for 'DD pass-thru' and you want that set on or it will decode it and downmix to 2 channel PCM.
You may also have to set similar settings in the media player you are using to play DVDs. If your receiver shows PCM then you do not have the DD output settings on or your card is not capable of outputting the bitstream.