The deal with s/pdif

Recording from a "Regular" analog source is done with 1/4" and XLR. Recording from a Digital source is done with S/PDIF (among others). Recording the output from a digital mixer, or from a processor (like a Pod with digital outs) can usually be done more accurately digitally.
 
"S/PDIF" stands for: "Sony Philips Digital InterFace".

there are several different ways of sending S/PDIF data. You might find the following types of interfaces:

coax - this is a 75 ohm coaxial cable that connects with RCA plugs
TOSLINK - this is an optical connection
TTL - this kind of signal is present on sound cards, and on TOSLINK modules

The coax interface uses 75ohm coax cable with RCA connectors. Even cheesy audio patch cables work well for transmitting S/PDIF. The signal is +/-0.5V and should be terminated with 75 ohms on the receiving end. (termination is built into coax inputs)

http://www.andrewkilpatrick.org/projects/spdif/
 
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