Luana Carothers: The optical SPDIF should be used where possible as it gives slightly better sound quality because it is a digital signal and does not degrade or pick up interferance along the cables. However not all equipment will support it.
Jed Porada: heres how it works. when connecting the receiver via toslink the receiver does the deocding of the audio, when connecting it via the analog outputs, the computer decodes the audio both sound the same, if the sound card supports 8 channels i would hook it up to the analog outputs because toslink (optical) only supports 5.1 not 7.1 and this garbage about keeping the signal digital as long as possible is retarded, it all eventually has to be converted to analog before being amplified, unless your running hundreds of feet of cable next to a cellphone tower, an analog signal will not degrade any more then a digital one....Show more
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