Outside Connection
SPDIF connection outside the computer can be made between various digital devices like professional CD Players, Home Theatre receivers, Mini Discs and DVD Players. Connecting through SPDIF is the best option if there is SPDIF output in the DVD Player and SPDIF input in the Home Theatre Receiver. The digital SPDIF connection gets rid of electromagnetic interference and therefore noise. External SPDIF connectors can dispense with the analog RCA cables connection, a fact unknown to many users.
SPDIF Connection
SPDIF outputs and inputs are provided only by high-end sound cards and motherboards. The sound cards providing external SPDIF connection are accompanied with an adapter card. There may be either a square optical fibre connector or a round coaxial cable connector in this adapter card. Similar such device can also be installed for external SPDIF connection on motherboard with SPDIF connector. External SPDIF connectors (coaxial or optical) are directly soldered to motherboard or through an adapter in case of high-end motherboards provided with on-board audio.
Motherboards & Sound Cards
Buying the right motherboard and high-end sound card is an essential prerequisite for SPDIF connection. All the four options, viz. optical SPDIF input and output and coaxial SPDIF input and output are not offered by all motherboards. Some high-end motherboards only offer optical/coaxial outputs but no inputs. Those wanting to connect their PCs to a Home Theatres Receiver would find only outputs as a great advantage for enjoyment of best quality of 5.1 audio experience. But this same thing is disadvantageous to those wanting to record on their PCs audios from mini discs using SPDIF connection, an important feature for people working with digital audio. This problem is due to the SPDIF adapter. While the motherboard may possess all the four options, the adapters supplied by the manufacturer limits this option. An adapter with all the four options would just be the most ideal.