This topic resurfaces every 18 onths or so - below is link to earlier thread.
http://forum.audiogon.com/cgi-bin/fr.pl?fcabl&1019742769&openusid&zzUpgrade1394&4&5#Upgrade1394
IMHO, I have NEVER found coax to sound better than a decent toslink - the toslink has better body, lower noise floor and just overall clean musical sound. In some systems, poorly executed optical outs (especially high-end gear which biases towards selling astronomically priced coax cables) may give a false impression of inferior sound, but all things being the same (i.e. execution and cost of coax and toslink outs), the optical is inherently superior. Please, do not even mention bandwidth...