I ripped all my DTS CD's to multichannel flac using the following method:
1. Rip audio CDs directly to (undecoded) .wav using either foobar or EAC (both freeware). It doesn't matter which you use, as long as you're ripping in secure mode.
2. Open audiomuxer. Tools -> audio conversion -> select audio, and at the bottom of the file browser, change the 'files of type' to "DTSWav files (*.wav)" and then select the files that you ripped to .wav previously. Pick your desired FLAC level from the menu on the right hand side (does anyone use anything other than 8?), click FLAC and you're off to the races.
There are two reasons I do it this way: one is that by picking DTSWav from the dropdown it forces audiomuxer to see the files as DTS encoded, and if any of the DTS flags are missing or incorrect it will reconstruct them for you, which is great if you've ever had a DTS CD to FLAC conversion that just comes out as white noise. The second reason I do it this way is that DTS CDs are actually 20 bit / 44.1kHz, and if you do the DTS decoding in foobar you only get 16 bit FLACs, whereas with audiomuxer it uses the newer DTS decoder (the same one that gives you full lossless from DTS HD MA) and it outputs your DTS CD's as full 20 bit, inside a 24bit container. The files aren't any nominally bigger than if they were actually 20 bit because FLAC just compresses the padded 4 bits down to nothing.
GOS, as for your blu-ray drive not recognising the Lyle Lovett disc at all, I would stick another audio CD (silver, not burnt) in there, just to check if your drive is having problems reading audio CDs or if it's something specific with that disc. I've never heard of a BluRay or DVD drive that didn't also read CD's but I guess anything is possible. You could also just rip the disc on another computer or another drive and copy the .wav files to your ripping computer for encoding afterward.