Yes. The digital output produces better audio quality by transferring the bits 
(all music on a computer is broken down into bits (as is all tother 
information)).
If you want to use the digital output you would need to purchase a digital to 
audio converter.  I am not sure if any of the Sblive cards had there own 
digital audio converters in them or not so you might want to check that out 
first if you have documentation with the card.
My assumption is however that since there is a digital output on the card they 
want you to use an external digital audio converter.
Digital audio converters come in all shapes, sizes, and quality  not to mention 
cost. Also what kind of system are you going to run this into? If it's is a 
good system (your judgement is primary here) the digital audio converter would 
have outputs that you can connect directly into the input of your system and 
you should hear improvement in your musical sound.
Hope that helps get you started. 
On Feb 24, 2013, at 12:32 PM, "D&J MURRAY" <redba...@gmail.com> wrote:

> I just put an older S B Live card into an older Xp Home Computer.
> 
> Could someone tell me the function of the digital output and how touse it?
> 
> Thanks Doug Murray
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