Yes, my optical out works fine.  I'm running a stock MythTV (0.21) on
Fedora 10.  Three parts to the setup:

1.  Depending on the kernel, you might need to tell the snd-hda-intel
module what kind of chip to look for.  (On F10, the autodetection
works fine.)  Run "aplay -l" to see what playback devices ALSA finds;
if you don't see something like

card 0: MID [HDA Intel MID], device 0: ALC269 Analog [ALC269 Analog]
  Subdevices: 1/1
  Subdevice #0: subdevice #0

then create a file in /etc/modprobe.d/ named "options" and put the
line

options snd-hda-intel model=imac24

in it.  (If the file is already there, add that line.)

2.  Make sure optical out is enabled.  Run "alsamixer" and make sure
that all the mixer channels are unmuted, especially the ones that
start with "IEC958".

3.  Set up mythtv.  Under Utilities->Setup->General, on the "Audio"
page, make sure that both "output device" and "passthrough output
device" are set to "ALSA:iec958".

This should pipe everything to your optical out.  If you've got
additional problems, shoot me an email.

Brian
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