* Can the box decode DTS and send it to my surround sound via S/PDIF
yes
* Can it playback 1080p
no
does the box only allow FAT32 limiting it to 4GB. How is this overcome?
partition supported fat32 ,ext2 ext3;
* How do i play 8GB files or even DVD5 size files?
on enigma2.beta you can connect external usb dvd player.
video files can be played from network "nfs,cifs" ,and hdd.
on ipbox video media player does have some limitations ,you c ant play every think, some divx mkv files are played allright,others not supported.