Using iPod Hi-Fi with Digital Audio (Coaxial) Cable

I have a Bandridge Digital Optical & Coaxial Audio Switch Box which allows me to connect multiple devices to output sound through my ipod hifi via digital optical or digital coaxial cable(it actually converts from optical to coaxial as well). The problem is all devices connect perfectly through the optical ports on the switch box however my PC only has a digital(S/PDIF) coaxial port so I use a digital coaxial cable for this but no sound is output through my ipod hifi? Can the ipod hifi output sound from a digital coaxial source?