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motherboard Coax problems

I have the gigabyte K8NF-9 motherboard with coax in/out. I also have the Logitech z-5500 digital speakers. Shouldn't I be about to use the coax connection on the motherboard to get digital audio? Any idea of how to make that work? I tried plugging it in and turn my reciever input to digital and it reads: "no digital data".

Also, how would the onboard coax compare to the non-digital audigy 2 ZS? I also have that sound card.
 
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