S/PDIF digital optical output imac intel 2.4 ghz core 2 duo

Question

i checked in apple system profiler to see if i have an optical output available for my imac to connect for better sound quality to my new phillips blu ray home theater system. it appears that it does indeed have this type of output for high quality audio output
just wondering if this wire is the correct one i would use to connect my imac to my new phillips blu ray surround system? i checked my imac hardware settings and it says
S/PDIF OPTICAL DIGITAL AUDIO OUTPUT
Connection Combination Output
S/PDIF OPTICAL DIGITAL AUDIO INPUT
Connection Combination Input
i read in the manual for the phillips blu ray,that it has an OPTICAL INPUT for audio,would this wire work to simply connect from the imac to the stereo???
i found this wire on ebay that looks like it would be the correct one to connect the imac to the phillips blur ray Can somebody help me to confirm whether or not this wire will work and if i am even on the right track! Thank you very much for your help!!!
this is the ebay listing for the wire i think will work:
http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=160597409256#ht_1130wt_1141

Answer 1

even though i did just order the wire online, lets start over since you obviously know what your talking about when it comes to this kind of stuff.
i have a 2.4 ghz intel core 2 duo imac(i believe late 2007) running latest version of snow leopard 10.6.7
i used to have a killer phillips surround system300 watts that sounded great even though its petty to todays standards,i usually hooked it up with a cd/aux wire(headphone jack one side,red white other side) from the imac's headphone port to the stereo's aux input(red/white) but then my rabbit chewed the wires and speaker beyond repair,so i bought this brand new phillips blu ray system 100 watts thinking i would get much better sound while connected to my imac while playing movies,games etc. but once i hooked it up like i used with the older system,it sounds basically the same,only slightly better,when it should be 700 watts better! but i figured i was doing something wrong wince the imac has all these crazy better quality output ports and the new system has all these crazy better input methods. dont want to sound ********,i do know a lot about basic audio,editing and all things computers! anyways, i was poking around with the system profiler application and noticed it said the S/PDIF output mode was available and the imac had a digital output capability. i also noticed in the manual for the phillips that it said something about a coaxial/digital input and thus i thought by buying a special wire i need to make the connection i would get much better clearer or ever dolby or dts audio output,which most of the blu rays and games i play on my mac have. so basically i have all the necessary components except for the wire to achieve this dream of mine. thats where you came in to help,thank GOD!
Here is the link for the exact model i ordered from walmart and already have set up and connected via the old method as we speak.
http://www.walmart.com/ip/Philips-Blu-ray-Home-Theater-System-HTS3251B-F7/160049 41
by comparing the player with the imac i have can you tell me if i am on the right track as i thought i was before?? Or what would you suggest i do to get better or the correct high def sound out of the imac from whatever is playing and to play out of the new phillips blu ray system i just bought. Thank you very much for all your time and helping me with what should be an easy, simple problem.