Perry Deshazior: The conversion is probably the changing of the transmission type from optical TOSLink optical to coax instead of changing the signal type. The signal will be in the S/PDIF format either way so it should just work without any kind of appreciable loss.
Ronny Dorge: I don't know much about xbox, but be certain that the conversion clock will convert the xbox properly. Dolby digital bitstreams comes out at 192khz and most cheap converters only work to 48khz. You'll have to downshift to PCM (44.1khz) to get any sound.
Raye Tredennick: There is no loss of any kind through this conversion, as it is all digital.
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