Advice on how to setup HTIAB and HTPC
#1
First of all, I'm rather poor and can't afford to buy much.

I am looking for advice on how to setup my HTPC and HTIAB. I currently have a core2duo computer with only PCI-E slots (no standard PCI slots), standard sound outputs+ 1 coax digital output (onboard), and a Radeon 6770 video card.

What I'm trying to do is hook it up to my home theater in a box system that has only 1 digital optical input (no coax digital) and to my 50" plasma that does have an optical output but it only passes through the stereo signal from an HDMI source so I really won't be using that. I originally had the idea of hooking up the HTPC to my TV via HDMI and then using the optical output of the TV to pass the signal to my home theater system however in some research and help from fellow members, it turns out that most TVs with digital signal outputs only passthrough the stereo signal and won't pass the full 5.1 signal so that setup is out but it is what I'm currently using until I figure something else out.

Should I just buy a TOSLINk to Coax digital adapter? Or something else?
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#2
Yes connect the computer to the amplifier and ignore the crap TV speakers. SPDIF converter to convert coax to optical. The adapters are quite cheap, the signal is the same.
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Advice on how to setup HTIAB and HTPC0