Got everything working as in the 1080 p file is transcoding to show up on ATV 3. However the audio being played is 2 channel instead of 6 channel. is there a setting somewhere I am missing?
Yep... I guess the last PMS update, currently only available with PlexPass...
As Baa stated you need plexpass account with the latest PMS server.
https://github.com/iBaa/PlexConnect/wiki/FAQ#playback
Note the configuration change you need to make as well.
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