Michael: I believe you are correct in saying that using headphone jacks give you analog output (into a headset) but when plugging a Toslink mini-jack into the same port you get digital output. That's how I had interpreted the iMac description of the headphone port in their manual but my friend had me wondering.
I'm glad to read that at least one other iMac user is happy with the Toslink connection. Thanks for the reply.
Pete
I'm glad to read that at least one other iMac user is happy with the Toslink connection. Thanks for the reply.
Pete