As far as i know X-Fi fully supports Dolby and digital dts!!
Here's a description of the product

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Your music and movies. Way better.
Creative's Sound Blaster X-Fi Xtreme Audio Notebook brings your MP3 music and movies to life! Compatible with the new ExpressCard format it is a great choice for the latest notebooks. It features award-winning X-Fi technologies including X-Fi Crystalizer, which restores the details and vibrance lost during compression to MP3 and DivX, breathing life back into any audio, and X-Fi CMSS-3D, which expands stereo music and movie sound tracks into amazing surround, even over headphones. Experience your notebook audio like never before when combined with PowerDVD for Dolby and DTS movies, or with EAX and OpenAL in games. This ExpressCard upgrade also features analogue and digital connectivity plus the option to upgrade to 5.1/7.1 surround via the optional docking module.
* ExpressCard format ensures compatibility with the latest laptops.
* X-Fi Crystalizer restores the details and vibrance lost during audio compression, enhancing MP3/WMA, games, streaming audio and video, TV and radio, DivX and DVD movies.
* X-Fi CMSS-3D Headphone delivers incredible surround sound for movies, music and gaming over stereo headphones and Creative ALchemy (free download) restores EAX and surround sound to all your Direct X Games in Windows Vista.
* Includes Cyberlink PowerDVD software with DTS® and Dolby Digital®-EX decoding (via free download) for an unbeatable DVD movie watching experience.
* High quality flexijacks provide a wide range of connectivity options. Outputs: Line/Headphone/Optical Digital. Inputs: Line/Mic/Optical Digital.
* Optional 5.1/7.1 speaker docking module allows connection to surround sound systems and up-mix of stereo to surround.
Source -
X-Fi Xtreme Audio Notebook
More Info -
Sound Blaster X-Fi Xtreme Audio Notebook - Xtreme Fidelity sound at home or on the go
Btw this is the optional 5.1/7.1 speaker docking module for surround sound!! -
And
more info about the module -
Speaker Docking Module
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About the availability!
i too had tried Nehru Place but, they didnt seem to have the express card one! they had the PCMCIA Audigy i think! but since my laptop only had a Express Card 54 slot I needed the express card only!
So i checked out Creative India's site! and they have listed the product! -
Sound Blaster X-Fi Xtreme Audio Notebook - Xtreme Fidelity sound at home or on the go
So i checked out the distributors in Delhi frm the site -
Distributors
I found these two!!
Cyberstar Infocom Private Limited,
T-21, Basement,
Okhla Industrial Area Phase-II,
NEW DELHI-110 020.
PH. No. - 911140581611
and
India Digital
135-137, Rectangle-1,
District Centre, Saket,
New Delhi-17
Ph. No. - 011-46096400
9958355332
At that time neither of them had the express card!
U can check if they've restocked the card!!
Also, in
Nehru Place there's a shop in the same line as CE and SMC near "R.R. Systems(or computers)" that sells professional audio equipment!
Do check that out!!
Last time i was there, i saw they had the PCMCIA Audigy 2 and USB Creative X-Mod(based on X-Fi technology) they too didn't have the express card when i needed one!

Hopefully, they might have it now!!
As for me, I finally ordered it from DELL USA for around $69 via the legendary KMD!!:hap2:
I got it in about 5 days!!

hyeah:
since then i'm literally in a music heaven!!!
My EP-650 never sounded so awesome!!

hyeah:
Tell me if u need some pics about the card plugged into my laptop! and other accessories that came with the card!!