Got It!
Soundblaster Live for the Mac provides a Digital Audio out capable of driving 5.1 sound straight off the DVD through either Cambridge Sound Works' "Desktop Theatre" line or the Creative Labs' "Inspire" series.
The implication on Creative and Cambridge's webites is that Dolby Digital (AC3) signals will pass through and be converted by an out-board amp that comes with the speaker packages.
Total cost appears to be under $500.00 total for 1 centre at 21 Watts, 4 surrounds at 7 watts each and 1 30 watt Sub. Cambridge Sound Works' 3-piece systems are enough to fill a 15'x30'x8' room.
Happy AC3!