Optical Output not Working

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May 9, 2008
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Recently my optical output stopped working. At first I thought it was the cable, and then the adapter, but now I believe it to a problem with the Mac.

When I plug a mini toslink cable into the output of the back of my iMac, in the Sound menu it changed to Headphones instead of digital optical. Does anyone know why this is the case and how can I fix it?
 

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