So I finally got my audio card working in linux with SPDIF passtrough.
I use artsd on top of alsa, and everything plays trough my receiver.
Now when I try to play a DVD using passtrough Xine complains that the sound card is being used, what sounds pretty understandable when I see the PCM light on the receiver turned on. (Actually, the same happens to Windows, but in win, PCM is activated in the first sound output and in linux it gets activated as soon as the receiver turns on).
The solution I found to this in Windows is to turn the receiver off and on again or just change the input to something else and then go back digital, so the receiver is freed and I can use it for DVDs.
This doesn't seem to work in Linux, and that PCM light I wanted to see so badly a few days ago (when setting up the sound card), now I can't turn off unless I shutdown the PC.
Any help will be appreciated