You get can get multichannel DTS by just sending it to the receiver if its a DVD your playing, if you really want to you can even tell the computer to decode it and send it via the analogue jacks. If the DVD is 5.1 then your going to get 5.1, the optical port makes no difference with the amount of channels, it just sends the 'bits'.
Are you actually sending this to an AVR/receiver and what are you talking about with your DVD player encoding DTS (do you mean decoding)? DVD players just decode the dolby digital or DTS to PCM which is then converted to analogue and outputted to the TV/ receiver which then send it to the speakers.
Once again, I will re-iterate this:
unless the source is in DTS or Dolby Digital then (unless you use a card that encodes it to them), you won't get DTS or Dolby Digital to send over the optical.
If the source is in stereo it remains in stereo, just because it might be DTS does not mean it will have 6 channels of audio. DTS is just the codec type and it supports up to 6 channels.
It is worth upgrading as a lot of games especially are in surround sound and can be sent over the optical if you use DTS Connect or Dolby Digital Live. Some also come pre encoded with dolby digital or dts. Also then you can watch DVDs with the full 5.1 audio if it has it. Additionally you can use Dolby Pro Logic II on a receiver to convert stereo up to 5.1.
Hope this helps