Bharat, I have the Z5500 too, on an ACER laptop, with HDA Intel Audio chipset, 
and AC3 passthrough worked like a charm with 8.04. I followed the steps, up to 
5, where I can't get any sound from ALSA in any case. Only OSS seems to work. 
What's worse, 'aplay l' only sees one card, analog, and the digital is nowhere 
to be seen, where in 8.04 there were two devices!! So, I guess no SPDIF sound 
any time soon. 
I installed the latest ALSA driver (1.0.18a) but nothing changed. This is 
really frustrating
No tricks with the alsa-base file worked either, the line "options 
snd-hda-intel model=acer" was already there.

So, what is so dramatically different about sound handling in the new
version? In every new version I tend to take things that worked for
granted.

-- 
[AO_ALSA] Unable to find simple control 'PCM'
https://bugs.launchpad.net/bugs/276957
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