OP you can plug just plug TV optical out into the optical in (Toslink ) on Your DAC and of course your RCA outs to your amp. the FiiO D3 has Optical and Coax inputs. Set your TV out in the audio settings to PCM out not Dolby surround and you are good to go.
lotta folks like the fiiO stuff.
You can get a Toslink cable at Best buy or Ratshack,Amazon or Monoprice. You can probably get something decent on line for $5.00 or
This Toslink switch (see below) might work if you need more than one Toslink input to your DAC input You can get a USB 3 or 4 port extender cheap a few dollars is all. if you need it.
Toslink and Coax are the preferred digital connections followed by USB You can flip a coin as to the merits of Toslink vs Coax some do prefer coax they are both digital connections and should be functionally equivalent. I'm sure Coax switches are avail should you need one
"Connect 3 optical components to 1 unit with this easy-to-use, locking rotary switch"
$5.28 at Monoprice http://www.monoprice.com/products/product.asp?c_id=104&cp_id=10423&cs_id=1042302&p_id=2946&seq=1&format=2
A black one 19.99 & FREE Shipping at Amazon that actually might be OK considering the free shipping .
http://www.amazon.com/Cables-Go-28734-Explorer-Selector/dp/B0002OF2FCEdited by tubetwister - 3/26/13 at 8:22pm