Can anyone rec a sound card with optical output ?

I want it for use with the Panasonic SA-XR50S
(which has optical digital inputs).
Search the archive. Also search under USB interfaces.
M-Audio makes a card called the Audiophile 2496 which has spdif digital I/O as a feature. It's a PCI interface and is around $150 online. You can see it on their site here. No experience with it to speak of. No knowledge of cards with an optical output either.

Good luck.

Hoontech makes add-on daughterboards for the ubiquitous and cheap Soundblaster LIVE series of cards. It's what I use in my computer - SB Live to CI Audio VDA1 DAC via toslink. Soundcard + daughter board should set you back no more than $70 total. It's not a Cadillac solution, but I'm very happy with it. It adds both toslink + coaxial ins and outs.
Just get an MAudio Sonica. Heck, you want one, email me. I'll ship you the one I have for $20. Its a USB Audio device that has an connection for a toslink out. The software is a bit buggy on my XP box (system sounds don't always play). Once in a hundred times on MM I have to hit play twice to get sound.
rme 9632, best sounding pc card imho.
This card has received some favorable reviews

At $30 you can't go wrong.
I use an E-MU 1212M that I am very happy with. This soundcard also has an EXCELLENT (for a sound card) DAC, which I also use for output to my computer speakers. My standard music path is:

FLAC -> Foobar2000 -> E-MU 1212M -> glass toslink cable -> Benchmark DAC1 -> Zu Varial IC -> Singlepower MPX3 -> Sennheiser HD650 headphones w/ Zu Mobius cable.
M-Audio makes a PCI card - the Delta DIO 2496

Basically it's got 2 Coax SPDIF (in/out), 2 Toslink SPDIF (in/out) and 2 RCA (out L/R)

I have one. It rocks.

I'm not sure if M-Audio has discontinued it though, because last time I looked it was not on their site any more. You should be able to find one on eBay or perhaps a local retailer still has stock.
I'll second Vikingboy on the RME nomination; they make great stuff.
This Xitel Pro HiFi-Link is very good to transfer audio files via a digital connection (either Toslink or Digital Coaxial) from a PC to a receiver or other component with a Digital input.
it's about $78 at