Originally Posted by Brando
Brando, just fyi, since I recently looked into this issue at some length, the adapter is one valid way of going about it, but there is some benefit to be gained from using a single digital cable with impedance matched connectors (1/8 mini at one end and rca at the other). See the 1505F cable in my signature. I picked that up from BlueJeansCables for $26, and the quality is excellent.
See
Blue Jeans Cable--What is Impedance, Anyway? for more info on impedance matching. And here's a thread I started where I got into a bit of an argument about the cost benefit of the BJC cable vs. the adapter route:
Flexijack I/O module alternative for your X-fi
Also, just to state it here, enabling the digital output on your X-fi isn't entirely obvious. The option isn't in the Creative settings. Instead, you have to go into control panel -> sounds and audio devices -> in the volume box, click the advanced button -> click the options menu -> select advanced controls -> finally you will see a check box to enable digital I/O. I had a real problem figuring this out the first time, so maybe this will help you out if you are a Windows XP user.