Are you attempting to bitstream the output i.e. WMC7 is just supposed to send the raw data for the TV to decode it?
No idea. What does WMC7 do with MPEG-2 and (I assume) AAC when sending it over HDMI?
If you're fairly positive the TV isn't doing it, are you sure WMC7 or Windows isn't decoding it and then re-encoding it? i.e. There's a codec on the Windows machine doing it. Have you installed something like the K-lite codec pack?
I did have a couple of codec packs installed, but I removed them. How do I find out which codecs WMC7 is using? Since it doesn't use DirectSound any more (it uses the new Media Foundation stuff), I think that the DX graph display tool is irrelevant.
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