Turtle beach only in stereo

They added Dolby digital 5.1 in the recent march update so the optical surround sound should work the way you are connecting the base station. Try re-pairing the headset to the base station or check if you have dolby digital selected and not a PCM option.

Advice for your surround sound system: If you can, always connect the optical sound from the source device (xbox) to your surround sound system. This will prevent any delay an extra device (your TV) may impose upon your audio since its going through one decoder (TV) to another (surround sound system).

They are definitely forcing users to buy HDMI surround sound equipment to consolidate the HDCP dilemna. Too bad they don't realize gamers use headsets ;)

Yeah, I know that would be ideal to wire it that way, but if I link my surround via optical, I have no way to attach my Turtle Beach set other than through the stereo input. Far from ideal.

Thanks for the help though. I will re tinker with the settings.

Just a quick look at the manuals and support for the TV and Blu-Ray/Surround Sony BDVE2100 and I would say the best option is connect the Sony BDVE2100 to your TV via HDMI making sure to use the HDMI port with ARC audio return channel support. This way you shouldn't need any optical cable from the TV to the BDVE2100 when watching TV. This should also help avoid having the TV decode the audio which is probably more limited in what audio codecs it supports versus your Sony BDVE2100.

Then if you don't want to unplug optical cords all the time since your surround only has one I would suggest a simple Toslink splitter or switch so you can plug the Xbox One into both the Surround Sound and X41. If you have a lot of HDMI devices could also go with a HDMI switch with Toslink. Only thing about using a switch is you will need to change audio settings on the Xbox One to Dolby Digital 5.1 when using your Turtle Beaches. You could just leave it on that setting, but changing it back to DTS or PCM when using your surround sound might sound better.

I have never owned a turtle beach headset, you'd think they'd offer some sort of optical passthrough so you could go Xbox One > Turtlebeach > Receiver. Then again, that goes against my previous suggestion that the less components in between, the faster the signal is.