Hi Bottleheads,
Saw the previous thread started by JC back in June... rather than reply to an old thread, I thought that I'd start a new one.
I've been using a SIIG SoundWave 7.1 PCI. It cost less than $35 on Amazon. Yes, it has all the high-end BS that you don't need - but at that price, it does not matter. The secret to the bitperfect output via S/PDIF for the SoundWave 7.1 (and many other C-Media 8738 / 8768 based soundcards) is a free, open source driver from a gent whom goes by the name of Dogbert on Google Code...
http://code.google.com/p/cmediadrivers/I am running the third incarnation of my home music server, using this driver and the coax-out (via RCA) S/PDIF jack of the SoundWave card. It works PERFECTLY with Media Monkey 3.x; should work fine with Foobar and others as long as Dogbert's driver is installed and the software is configured to use it.
First server was WindowsXP x86, second was Windows Vista Pro x86, now running on Windows 7 x64 on a cheap Compaq with 2Gb RAM, 500Gb HDD and a dual-core AMD Sempron. If you're using a 64-bit version of Windows, you'll have to perform a well-documented trick to load Dogbert's driver, which is unsigned. But there's little need for a 64-bit OS to run a media server; that's just what the Compaq came with, and I didn't want to waste the Windows license.
Other than that, it's super simple and sounds pretty darn good. I'll document my system in another thread, need to get back to the Colts - Jets wildcard game... :-)
-Don