This is helpful and does seem simple, thank you. I guess I arrive back at my previous issue trying to determine if streaming through my CCA is better than plugging my laptop into it.You would take a toslink cable that has one side with the mini tos tip or an adapter:
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Plug the skinny end into the same hole you'd plug your analog cable into.
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Then plug the fat end into one of these inputs on your receiver.
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And then select that input from your remote or input selector. That's it.
When streaming through my CCA I was not able to find a parametric EQ that worked while streaming to it either from my phone or computer. So I switched to my laptop in order to be able to apply a system wide parametric EQ app (which significantly improved my sound).
Would using this same cable improve quality if I use it with my laptop, or perhaps it does not have the "optical" capability? It is a 2010 macbook pro someone gave to me, so until I can get a better laptop it is my best option.