Assumed that FLAC meant FLAC 100%, not half way 
Specs says it can do up to 8 channels…
Misleading advertising when it doesn’t say that multichannel FLAC not supported
Will this be fixed?
I don’t think it’s on the schedule to be fixed, but you can do a search (go to the Ideas forum – the link is above).
If it’s not in there make sure you suggest it yourself.
I have multichannel FLAC MKV files I made with Handbrake and they play perfectly fine on both my WD TV and WD TV Live.
I have recently begun converting my HD-DVDs to MKV format. My MKV keeps the original Dolby TrueHD, DTS-HD MA, as well as any other audio tracks in addition to the aforementioned tracks converted to FLAC so that the WD TV can play them.
No, the Live doesn’t play ANY mutli-channel audio (other than stereo).
What it DOES do is to either convert mutli-channel audio to stereo (a very very different thing than the OT wanted) OR it passes through the DTS and/or AC3 5.1 multi-track to the decoding device (usually a receiver) for multi-channel playing. It will not do this with FLAC multi-channel.
If you want surround sound on the Live you need to use either AC3 or DTS (and set the output to digital).
