Do you still need help? I think i have your answer.
Click on the K menu > System > configuration > KDE > Sound > Sound System
Select the audio device : Advanced Linux Sound Architecture
Select the "Use custom sampling rate" box and enter 48 000Hz and select 16 bit quality.
Next, Select the "override device location:" box and enter "spdif"
Click apply and BINGO you should have sound working.
This worked for me in 2006, so i'm not sure if it'll work for you in 2005, but hopefully it will