It looks like the *****s in the shop i bought the soundcard from knew i was a noob and relieved me of some cash. they said the optical output could support 7.1, it's not such a big deal though as the speakers aren't exactly pro standard.
you guys are a great help, i'm off to get a replacement soundcard today and order a decent receiver (with HDMI). the next step will be to read thro' the rest of the forum to find which speakers to buy, i feel an upgrade coming on.
my wife thinks i'm crazy, especially as i'm completely deaf on one side and can't get the full benefit of stereo, nevermind surround sound!! but what the hell, ever since i watched Alien on a cine reel projector with the sound output hooked up to my dad's old B&O stereo i've wanted the best sound i can get. eventually after 30 years i might just get it!