Thanks all,
I discovered something else, after going into device manager and ticking the box "enable digital CD audio for this device", the sliders on the main Kx mixer page no longer had any effect and were somehow moved to the inf position.
However, everything was working as before, wave, synth and CD. I didn't notice any difference in sound quality either.
I did manage to hear the Spdif CD using the good old Src/Epilog combo, but it sounded cheap somehow, maybe I'll try the analog input, or better still, leave it alone.

After a little searching, it turns out it's the ide cable not the PCI slot that moves the sound across. It's all a little too technical for me tho.
I use Win 2k with SP4 btw.
Pierre