I can confirm the constant red light of the optical port, this is
normal with ANY optical audio port, not just those on the G5. If you
have any home theater or stereo equipment with optical out, it will be
lit all the time too.

I agree with what another poster said about there being something
wrong with the rear port that makes the system think there are
speakers plugged in and thus the internal is diasabled. If you do some
googling you should find some potential fixes.

Chance

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