XBOX 360 DIsplay error (AUDIO WORKING)

Is this with an HDMI or Composite connection? Have you tried switching them out? If HDMI have you tried a new cable?

If you have tried all of the above then you should definitely consider sending the console in for a repair before the warranty runs out.

the reset display should revert the display back to default settings.

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try the suggestions on this page.

support.xbox.com/.../audio-video

Some users said this worked for that error code, but was for Surround issue, see if works for Atmos and let us know.

Press Menu Button, Settings, Display & Sound, ensure HDTV is "select," not "auto."

This relaunched the display in 480p, which easily can be changed back to 1080p;

But the key is that this reseted the audio output options. could now select HDMI audio for 5.1 and DTS

[quote user="HAY HAY Its MDA"]This will reduce any possible audio delay caused by an extra decoder from the TV which the 360 already does for the receiver.[/quote]There's no decoding going on. If anything wiring to the surround system independent of the
TV will cause the audio to arrive at the speakers before the video does for the TV. If the TV supports 5.1 pass through, it should also support synchronizing the output of the audio port with the display such that the speakers downstream are in sync with the
picture.

The optical port on an HDTV is usually only needed for cable TV from a coax line that provides channels that use Dolby Digital. The HDMI audio passthrough usually isn't ment to work like that from the Xbox 360 to your TV,

Originally,
the content industry did not want 5.1 pass through. Now, they don't seem to care. My Sony KDL-55HX850 has 5.1 passthrough. All of my HDMI video is routed into the TV and the audio goes out to my Yamaha sound projector over the optical audio out.

but
disabling Display Discovery does this and you can do it that way.

Display Discovery has nothing to do with this. On or off, it makes no difference. If the display doesn't support 5.1 audio over HDMI it's not going to work if you disable Display Discovery
and then force Dolby Digital 5.1 on the 360.

One of the differences in switching from component A/V HD to HDMI is that the HDMI cord is all in one display & audio. Meaning the HDMI cord is all you need to get display, and audio from your 360, to your tv.