Ouya can decode DTS mkv, I just tested it and my home theater received a PCM audio stream (analog settings on xbmc audio output) and then tested the same mkv with digital signal pass through to my home theater (digital HDMI audio output in xbmc settings) that decoded it fine.
Only thing is that if ouya decode the DTS signal, I have PCM 2 channels audio, if my home theater decode it, I have DTS 5.1 channels audio (my HT is only 5.1).
For the records, I use xbmc 13.0 alpha6 from july 14 2013.
---------- Post added at 08:40 PM ---------- Previous post was at 08:30 PM ----------
You get static noise because your ouya is passing through the digital signal to your TV or HT to decode the signal. And clearly your receiver is not able to decode the audio stream. You have to change the audio setting output of xbmc to "analog" in order to let xbmc decode it before sending it out to your TV or HT.
Thanks for your detail reply. Can you please tell me the place where you downloaded XBMC you are currently using? It seems that there are two versions of XBMC. One is Android version, another one is Ouya version.
Thanks