Just in case anybody is still watching this: I have the same exact problem. I have a R9 290 (XFX, Black version I think), hooked it up via HDMI to my brand new LG home cinema set, and the set only get's recognized as 2.0 device. No options to switch it to 5.1 or even 7.1 output.
I do know what coolcole01 was talking about, I tried all of that. Tried hooking it up to my onboard HDMI outlet as well, same difference. Updated onboard sound drivers, updated AMD drivers including the audio drivers, updated Realtek software/driver for mainboard. No solution, my LG soundsystem only gets recognized as 2.0, can't set it to anything else.
The sound system itself seems to work perfectly fine. The test it did was perfect, all speakers work, when they were supposed to make sound during test, they did. Hooking up an USB HDD worked as well, playing a dolby 5.1 6 channel audio movie on it was fricking awesome, surround works perfectly, Just my computer won't acknowledge that this sound system is very well capable of producing fine surround sounds.
What else can I do?
I searched the net for days now, sent a mail to LG itself, but I'm too impatient to wait. Apparently OP in this thread has the exact same problem as I do.
But nobody seems to have had an answer. So that's why I'm asking again.
Oh, btw, to prevent anyone from saying: "you need to set it to 5.1 in the windows configuration herp-derp", I perfectly know how to do that. Even my headphones can be changed to 7.1 configuration in Windows (and they are connected via a frickin 3.5mm jack!). Doesn't have any effect, but I know where and how to do it, just those options never even show up for the LG system.
If nobody knows an answer to this problem, I will probably have to get an optic fibre cable (S/PDIF) to hook up the LG thingy to my mainboard's audio output, which can actually be configured in Windows to make use of 5.1 or 7.1. But that's not exactly what I want, since a) that would mean an extra cable, while I could do audio AND video via HDMI, and b) I read a lot about that S/PDIF is way inferior to HDMI when it comes to frequency/bitrate.
So yea... Any help would be appreciated.