I have a Turtle Beach PX5 and absolutely love it. the sound quality is great and the fact that it is wireless is super convenient if your TV is more then 5 ft. from your couch. Plus they work with the PS3 and most PC's. If your PC doesn't have a digital audio connection you can get this high quality adapter for $20 and then it will work perfectly.

I can't advise on netflix (don't have it) but I did have a problem with the supplied shield controller - home and back buttons were both extremely unreliable, even after a full charge, missing 90-95% of presses. Fortunately, I got two controllers as part of an amazon UK deal, and the 2nd one worked perfectly. I sent the dodgy controller back to amazon and the replacement also works fine, both before and after controller firmware update. So it may well be you too just have a dodgy button'd controller alas.

Kodi works fine for DTS & AC3 passthrough to on my receiver, when I switched it on instead of downmixing! I have switched to SPMC though, a kodi fork with better shield integration (voice search in and out of SPMC, SPMC shows/films showing up in recommendations being the ones I use most)

AFAIK, the shield doesn't support any interlaced modes at all, including 1080i.

With regards getting your Z5500 surround working (used to use that myself until recently!) you can use a usb soundcard on the shield, like this one (http://www.amazon.com/Turtle-Beach-Advantage-Digital-Adapter/dp/B0036VO4X4/ref=sr_1_1?ie=UTF8&qid=1463782348&sr=8-1&keywords=advantage+micro+ii) or an hdmi -> spdif splitter such as this (http://www.amazon.com/Tendak-Optical-Extractor-Converter-Splitter/dp/B017B6WFP8/ref=sr_1_4?ie=UTF8&qid=1463782375&sr=8-4&keywords=hdmi+optical+splitter) or there are RCA versions - either should get you AC3 & DTS support