The "Advanced" method to manage filter's settings is available only if the filter is loaded by BSplayer, and this is not your case for AC3 since BSplayer uses "mpeg 123..." filter instead.
You can uninstall "mpeg 123 and MAD FFDShow", or (maybe you'll prefer this option) try to raize AC3 priority in Filter management section (CTRL+P -> Filter management -> Filter priority).
I never had problems with AC3 v0.7b, instead v1.x lead me to choppy playback and other problems.. :roll:
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