There’s a new update available for the HD-DVD addon drive for the Xbox 360 today. Most notably, it improves compatibility with newer titles that are using advanced copy protection schemes, such as Digital Video Essentials, which didn’t play in the 360 drive until today.

You can now also select 2 channel linear PCM as an audio output option if you’re using the Elite. Great, but why give up surround sound for a movie so you can hear crystal clear sound from only 2 speakers?

From Major Nelson’s site:

Here are some improvements you’ll notice after the update: Added option for user to select from the following audio output formats via TOSLINK or HDMI:

• Digital Stereo (2 channel PCM)
• Dolby Digital 5.1
• DTS 5.1
• WMA Pro

Added “Dynamic Range Control” toggle for digital audio output
Improved HD DVD networking support
Improved HD DVD title compatibility
Improved performance with MPEG-4 AVC / H.264
1080p via HDMI is supported on the Xbox 360 Elite with HDCP compliant displays
Improved parental controls