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I would like to connect the USB of my laptop to the TOSLINK or Digital Audio Coax connection on my Panasonic reciever.
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There's a box from ADStech, the RDX-150 that does USB to/from line-level analog stereo and TOSLINK. It's relatively bulky, and I'm sure it isn't in the class of M-audio stuff, but for S/PDIF, bits should be bits. I'm tempted to get one and see what's inside. It uses standard Windoze USB audio drivers, which suggests it contains some off-the-shelf chip like the PCM2906.
If you are after reasonable quality, PC -> receiver, virtually any USB soundcard will do he job.If you are after bi-directional or high quality, the list is more restrictive.
If you are looking for good quality, the Sony PCLK-U5 can be found cheap on e-bay, or for easier implementation any of the M-Audio devices. If cost is not an issue - Empirical Audio.
J,I am not sure this is the BEST way, but it is a way, and it is inexpensive:
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