I have my xbox hooked up to my plasma and want to play at night when the wife is asleep. My tv has optical out which i already have the cable ran and everything, but im looking for an adapter which will take the optical signal and make it work to a headphone jack. I cant seem to find anything on my own.
I don't think you'll find a simple adapter. That optical out needs to be converted from digital to analog (via a DAC) and then the analog signal needs to be amplified for the headphones. There are small headphone amps available that have built in DAC's. There is mountains of info on this at head-fi.org.