Does anyone know of a good sound card that has an optical output. I would like to connect it to a CD player with an optical input to use its DAC's

You can pick up a adapter that allows you to use optical or digital coax for most Creative X-Fi cards.
http://us.creative.com/products/product.asp?product=1780&dcs.acsF_P=X-Fi%20XtremeGamer%20Fatal1ty%20Pro%20Series&dcs.acsF_A=Sound%20Blaster%20Digital%20I/O%20Module&dcs.acsF_X=Product%20Img

I use this: HT OMEGA STRIKER 7.1 Channels 24-bit 96KHz PCI Interface Sound Card
optical in\outs, works great!
http://www.newegg.com/Product/Product.aspx?Item=N82E16829271001
Tal

I use the Audiotrak Prodigy HD2, stereo only card with optical out.

I have been VERY impressed with this card, and the onboard AKM DAC sounds extremely good in my system. Usually sells for $75.

http://www.audiotrak.net/products/prodigyhd2/

The Turtle Beach Audio Advantage Micro (USB) goes for about $25 and has optical out.