Can anyone rec a sound card with optical output ?

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.

http://www.rme-audio.com/english/index.htm

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.
http://www.xitel.com/product_phfl.htm
it's about $78 at buy.com