For 2 years I have used the Coax digital out and ran a 50ft high quality (cable cost was $30) RCA type cable from PC in offfice to home audio video receiver. My sound card was a Santa Cruz, now I am using the on board sound on Nforce2 motherboard; both have SPDIF outputs. My receiver, a Kenwood, has digital inputs. So they signal is digital between the units and sounds great. I also have 4 sets of speakers throughout house (and outside house) on speaker selector switch. I have around 8,000 MP3 files. Fire up media player, select tracks or open playlist is super easy.
Of course, this is dependent on being able to physically run cables. I know some want a wireless solution. I do have my housed also wired with a Cat5e network and have jack by stereo if I ever want to use that option.