[QUOTE]Can the Xbox play a DTS audio file? These are generally wav files.[/QUOTE]
Actually dts audio has the extension of .dts, if you have a wav file, that is uncompressed and no longer dts as dts is a form of compression (alot like ac3, but with a much higher bitrate usually).
[quote]Is it possible to make them mp3 (with DTS encoded) and play them?[/quote]
No, mp3 is at best, 2 channel stereo audio.. DTS is at minimum 5.1.
[quote] Well now I tried it myself ... the MS internal audio player doesn't play DTS audio .... so watch out because your speakers can be damaged trying this at home yourself[quote]
The only way it would play DTS is thru dvd, and in that case it would pass the signal to a digital decoder, it would never do the decoding in the xbox itself.
[quote]Well now I tried it myself ... the MS internal audio player doesn't play DTS audio .... so watch out because your speakers can be damaged trying this at home yourself.
Can anyone explain why not?
I burnt an DTS audio cd-rw and the MS audio player recognised the tracks but all it gave was bad noise.[/quote]
Just did explain why not, look up.

[quote]Should it work when burnt on a DVD-r(w)?[/quote]
No, it would need software specifically coded to pass the dts audio thru your digital audio connection.. Like a dvd player would for dvd dts audio.
Hope this answers everything for ya.
[edit]Strange... quote broken?[/edit]