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S/PDIF can come in two flavors, coaxial and optical.
The first one uses RCA connectors, just like the analog connection. Normally, to comply to the standard you should use 75 Ohm cables for S/PDIF, but most of the time you can get away with using normal "analog" RCA connections.
The second type of connection uses the so called TOSlink connector (also found in the ADAT interface).
Either way, even if you have the coaxial method, you just can't simply connect it to an analog input (you'll hear a full scale square wave). You'll have to pass through a DAC, and like already said, external DAC's are expensive, usually more than the soundcard itself (state of the art DAC's can go up to $15000). M-audio made some in the past (Flying cow and SuperDac), but I don't know if they're still making them.
If you want a cheap solution, I can only suggest three things :
- buy another audio interface with more analog outputs
- get something that has DAC's with cheap integrated circuits (like some hifi amps or similar)
- find some schematics on the net and build your own cheap DAC
Getting an external DAC is just too expensive to do what you ask.
Oh, and a final thought. When recording or transporting a signal, there is no such thing as a digital signal. Sure, it represents 0 and 1's, but the signal itself is still electrical/magnetic/optical in nature, so analog. Meaning they can degrade like any other analog signal. It's one of the paradoxes of the digital systems. Digital is supposed to replace analog, but it still relies on analog to exist.
Think about it...
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