It would be cheap and simple to try the long Toslink cable as a starting point. Monoprice has good quality cables of all kinds at excellent prices. On that page scroll down to the third section, Toslink to Mini Plug, and pick a length that will work across your room.
I know you said you can't afford a wireless solution but a relatively inexpensive way to do that would be to find a previous generation used Airport Express on craigslist or ebay and a mini-Toslink to Toslink cable. The only issue with the older 802.11g Airport Express is that you might get interference from a portable phone or microwave but changing the channel with the Airport utility software will almost always fix that. 802.11g is fast enough for music streaming.
Sorry, I don't know anything about the iMod output.
I know you said you can't afford a wireless solution but a relatively inexpensive way to do that would be to find a previous generation used Airport Express on craigslist or ebay and a mini-Toslink to Toslink cable. The only issue with the older 802.11g Airport Express is that you might get interference from a portable phone or microwave but changing the channel with the Airport utility software will almost always fix that. 802.11g is fast enough for music streaming.
Sorry, I don't know anything about the iMod output.