I have the same issue on a week old feisty + mythtv install with an audigy 2 
ZS. All was smooth using spdif out, then after having played a DVD (not the for 
first time though), spdif out just stopped working. It's still connected (dual 
boot to win confirms that easily), and pluging headphones into the central 
analog out still gives sound in some apps (depends on settings). 
this is what I've tried without any progress:
  - set all the mixers on max and unmuted (in gnome volume control and 
alsamixer)
  - reinstalled alsa-base, alsa-utlis and linux-sound... with purge,
   - copied .asoundrc.asoundconf, .asoundrc and /var/lib/alsa/asound.state from 
another box with identical hardware and similar setup

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Alsa loses AC'97 SPDIF output in Feisty
https://bugs.launchpad.net/bugs/118861
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