from my understanding of what I've read, 6.1 discrete is passing 6.1 channels of signals to be processed by a device with 6.1 decoder. This means you have to connect your Mac to a 3rd party device to run 7 RCA cables to your surround reciever.
From Handbrake:
"Another method is to create 5.1 channel AAC audio tracks. For the Track Mix, select "6 channel discrete" from the drop-down menu, and your movie will contain discrete surround sound in the modern AAC format. This takes up less space than AC3: instead of 448kbps, you can do well with 384kbps (64 kbps per channel). Its real benefit is that it doesn't make QuickTime barf. Sadly, it is very difficult to hear all those discrete channels of sound. It cannot be sent over an optical cable to a home theater amp. If you try, whether on a Mac or an AppleTV, you will only hear "downmixed" surround sound, similar to Dolby Pro Logic. To hear the discrete surround sound in all its glory, you will need to attach an analog surround sound device to your Mac. One popular device is the Griffin FireWave. Then, you have to attach a cable to your amp/receiver for each of the six speaker channels. It cannot be done over optical/HDMI".
Technical Specifications
Audio Ports: 3 - 1/8" (3.5mm) stereo minijacks (Left/Right, Center/Subwoofer, Left Surround/Right Surround)
FireWire Ports: 2
Supported Audio Formats: Dolby Digital, Dolby Pro Logic II
Additional audio configurations are supported through Mac OS X's Audio MIDI Setup utility
Frequency Response: 20-20,000Hz
Line-out voltage: 2Vpp
Size: 132mm (5.20) wide x 77mm (2.83) deep x 25mm (0.98) tall