If this is in the wrong place, let me know and move it, or remove it and tell me where to repost it

http://www.amazon.com/Hauppauge-Gaming-Definition-Capture-Device/dp/B008ZT8QKO/ref=sr_1_1?s=electronics&ie=UTF8&qid=1437109074&sr=1-1&keywords=hauppauge+hd+pvr

I know this and the Gaming Plus edition has 5.1 surround recording through digital audio (SPDIF), but can it also encode 5.1 from the HDMI audio stream?

Also, if it only downfolds and encodes stereo from HDMI audio, how is the quality and bitrate? Does it encode the audio on the m2ts's as DD, PCM, or AAC?

I ask because I have this http://www.amazon.com/AGPtek-1080P-Click-Recorder-Capture/dp/B00MQQKDYE/ref=sr_1_1?s=electronics&ie=UTF8&qid=1437109450&sr=1-1&keywords=agptek+game+capture

While the picture encoding quality is very good, the audio is horrible! Not only is it AAC at varying low bitrates, but it has that horrible compressed metallic ringing sound when a sound plays at high volume. I am aware there are video capture cards with 5.1 audio capture that go on the PCI slots, but most are for PCIx16 and my desktop is PCIx8 (I believe).

Case your wondering, my unit is a HP Pavilion s5610f Slimline Desktop with:

H-Apricot-RS780L-uATX Motherboard

AMD Athlon II X2 250 Dual Core 3.0GHZ Processor

8 GBs of DDR3 RAM (upgraded from a measly three)

64bit Windows 7 Home Premium preinstalled (OEM)

ATI Radeon 3000 Integrated Graphics

640GB Hard Drive SATA 7200RPM

And I cannot afford that many upgrades (motherboard, etc) to it if I need to get PCIx16 slots in it, so if I have to I'll buy a new desktop for the same amount as upgrades would be. But for now the USB capture cards seem to be my only option.