Ok, I bought a Leapfrog wireless video transmitter and receiver from Best Buy for $114. I was hoping to get a cheaper model from Radio Shack but they were out.
Well after hooking it up, which was a snap, I can say that it works great. I get crystal clear stereo sound through a wall, about 20' away, playing my MP3's or any other sounds from my computer.
However, I haven't been able to get it to play Dolby Digital 5.1. I'm able to play it with my analog 5.1 speaker system on my computer but my receiver won't pick up the DD 5.1 signal. I can probably rule out the wireless transmitter as the problem because I tried it with a long cable and it is doing the same thing. I have a feeling it's my sound card. I have a Sound Blaster Live! card that is advertised to do 5.1, which it does in analog mode, but not in digital mode through the digital SPDIF jack.
I guess I could probably live with stereo / prologic for my games for now, but later I'll probably upgrade my sound card to see if it makes a difference...they're so cheap it will probably be sooner than later.
Hope that helps,
-Marcus