Can anyone rec a sound card with optical output ?

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

http://www.chaintech.com.tw/tw/eng/product_spec.asp?MPSNo=16&PISNo=199

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.