i am unfamiliar with the barracuda card, but if it's anything like the x-meridian then when using dts there is a setting that allows you to determine how much sound goes to the fronts or center.
Also if your essentially only outputting the sound to stereo speakers you may want to try the highest setting (if your reciever can handle it) For my x-meridian thats 192khz but unfortunately my reciever maxes out at 96.
Also i find myself leaving it on DTS for the encoding, using the DTS DSP mode and setting it to Wide so it's balanced between my centre and fronts.
In regards to never hearing about encoding to DTS on the fly well.
Back in the days of the nvidia sound storm 2 it had a feature called DDL (Dolby Digital Live) it then dissappeared but resurface last year in the x-mystique. Basically these cards take ANY input sound regardless of the channels and rencodes it into either a Dolby Digital or DTS bitstream. This includes MP3's, Windows Sounds Etc. The only place where this falls down is getting the card to do a bypass for movies or other content that is already encoded in these formats. Dolbly can be done by using AC3 filter but for DTS the only way i have found to do this reliably is using nvidia pure video.
While these cards don't really support anything above EAX 2 i think it's really a moot point since i find DTS/DD is way better.