Thanks for your help guys.

@CB - Thanks for the info. I have been doing a bit of research and have came to the same conclusion as you. I will just connect my Altecs via Analog and the home theater via Coaxial to the Auzentech sound card. I have been talking to one of the tech support people from Auzentech and they tell me this will work but I will only get 2 channels through each connector. This would be a problem if I was going to run both sets of speakers at the same time but the Altecs will only be powered on when I need to use my headphones or for some quiet listening. This will allow me utilise my full surround sound and have the flexibility of not having to go behind my PC to plug in headphones when I need them.

@J-Roc - I know for a fact that using the rear audio connectors on my DFI Karajan audio card disables the front connector capabilities. I could probably just run my headphones off the default audio but then I am not getting the advantages of hardware accelerated audio plus it will add a bit more strain to my CPU. I am planning on removing all on board sound because it wont be needed with the new Auzentech sound card.

Once again thanks for your help guys.