What kind of laptop do you have? Some of the new ones actually have a setting in the config for the soundcard to convert the headphone jack into a sp/dif output and you would still use the same cable recomended by seth=l, and simply connect it to the coaxial on the reciever. I use an soundblaster sb live 5.1 card and take advantage of the sp/dif output most of the time with my old dac, but I only run 2.0 so I'm not real sure how the surround decoding is going to work as of yet. The signal is even fed throuh 33 feet of coaxial cable and I've never lost the signal lock yet.