Thanks for the info Moth3r, I think that's pretty much exactly what I needed to find out.
Unfortunately though it looks like audio cards based on those two chips are no longer available new and are not currently for sale second hand on EBay either. Bummer :(
However cards based on the newer CMedia CMI8768 might possibly work, so I might give one of those a try and see what happens.
On futher searching into this topic, I've found quite a few posts from people who mention all sorts of things which make this even more confusing. Some people have mentioned that the 2-ch audio sample rate for PAL is 44.1KHz (same as CD), but NTSC is 44056Hz. I'm pretty sure at best 'cheapie' audio cards with optical SPDIF in will only manage 44.1KHz. Any idea if this is true? bob23 mentions it here and Buster D mentions it here. It's also mentioned in the LD FAQ here, but others have said it's a load of poo. Dnewhous thinks so according to this post here. Who's right?
Also, you mentioned in this thread about having to up-sample the 2-ch 44.1KHz audio to 48KHz for DVD player compatibility. If this is the case, then why not just capture at 48KHz and have the audio h/w do the re-sampling for you? Or is this one of those cases where the cheap HW will give audio artefacts and it's more reliable (pure?) to use s/w for the up-sample?
Lastly, Darth Editious mentions having to strip out padding from the captured AC3 raw audio stream here. Has anyone else come across this and can suggest an easy method to remove the padding please?
Many thanks again guys :)
PS: Not that I really need to capture LD - DTS digital audio streams, but has anyone figured that out? I can't seem to find anything much on that at all.