Thanks bridgman, that's what I was thinking, but I just wasn't sure.

I haven't done any extensive comparisons, but there doesn't seem to be a dramatic quality loss with all this conversion (analogue to digiatl and then back again) although my hearing may not be as keen as some others.

Maybe I'll just connect the cdp up via an SPDIF cable. If anything, at least there will be one less cable in the web...