Optical Out

So I just found out that the headphone jack is also an optical audio port. Can someone please tell me more about this? I think I need the toslink cord to use it but what do I plug it in to? Any other info would be greatly appreciated. Thanks.

nobody has any info on this?

You can use it on tons of audio equipment.

I use mine to hook up to my stero via an RCA cable. I think that's the name. It's a cable with the red and white audio plugs on one end and a headphone lookin plug on the other. Works great!

you need a mini-TOSLINK to regular TOSINK adapter... once you get that you can plug it into your home sterio or any other optical audio device for full 5.1 sound in movies, its also much higher quality

I use it to transfer my old sony mini discs to the itunes. I have to do it the old fashioned way. So I use the optical out from the minidisc and connect to the optical in of the macbook(it is both input and output on the mac.) Once connected I use garageband to record. I do the same for my dads old LP'S. THat connections though is analog.