If you are connecting the computer to the audio gd via usb, you need to select that from your computer (not SPDIF). I'm not sure that's how you've set it up but that is the way your post reads. Btw, I bought the AudioGD Fun B version a few months ago for my office and really like it. It beats the heck out of the nuforce udac I had been using and does a nice job of driving my headphones. I'm not sure what the difference between the "B" and "A" versions are but the B is around half the price of the A version.
Yeah I'm connecting via USB. But when i plug it in the only new option which comes up in my mixer is for TE7022 Audio w/ SPDIF. Which it describes as "(Generic USB Audio)"