Having trouble with SPDIF cords

I tried searching, sorry if this has been covered.

I got a brand new laptop, and as usual, the audio output is one 3.5mm minijack. Howevere this 3.5mm jack is labeled SPDIF, so I am under the impression that I can connect it to, say, a receiver, and get surround sound. How would I go about connecting this 3.5mm jack to the digital coaxial jack on most receivers?

The only idea I have right now is this: http://www.partsexpress.com/pe/pshowdetl.cfm?&DID=7&Partnumber=090-288
and then obviously using a standard coaxial? Would that work? I know a coaxial would fit, but since it is labeled RCA, would there be different resistances or something that would not allow it to work?

Also one last thing. I can plug analog imput jacks into this (my headphones, my old speakers), and they work, and I know neither of them have a way of converting digital to analog...what's up with this? Is it just set on analog instead of digital from within the computer?

Thanks for any help
 
Thanks for that, it's probably the closest I've seen so far. But from the description, it appears to be a chord to go from something like a MiniDisc into a computer to rip mp3s to the computer...there is nothing on that page that leads me to beleive the minijack side is actually a digital jack instead of just a normal stereo connection.