Which would be the better connection if I wanted to connect a pc with this sound card to a home stereo: Using the optical output or the Wolfson DAC on the 7/8 plug?
No, the DAC converts digital signals to analog ones. If you want to use the the optical out, the soundcard will send a digital signal out of the optical port to the optical input of your receiver. the receiver will take that signal and convert it to an analog signal with its own DAC. The Wolfston DACs only job is to convert digital signals to analog ones to be outputted as line level audio from the 7/8 outputs.
I'd say it depends. If the amp is close to the comp, so that you wouldn't need more than 1.5 m or so of cable, then give the Wolfson DAC a try. For longer distances, like 5 m or greater, I'd better use the optical out with decent glass fiber core optical cable.
My receiver is about 2 feet from my PC so that could work. Would I be able to hook up both the TOSlink and the 7/8 alt using the same settings? I followed the guide for setting up the card with foobar and my new Klipsch speakers sound awesome but I would like to be able to use my home stereo without having to change settings.
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