Update:
I think I have found the problem. Xine by default will use pulse
audio, which does not support AC3 pass thru.
Workarounds:
1. use "xine -Aalsa"
2. move /usr/lib/xine/plugins/1.20/xineplug_ao_out_pulseaudio.so to
/usr/lib/xine/plugins
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Can't get AC3 Passthru to work in Totem-xine
https://bugs.launchpad.net/bugs/238181
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