Ok I do have a red led back there not sure it is working I tryed to set it as default but no change ( it did not flash any stayed a solid led)
You have more activity than I have...Not light, no coaxial signal to amp and no signal to the ASUS HDMI video card. The device manager, the audio device panel under the realtek icon all say that everything is working and I even get a signal on the Digital Audion "Vu" meter. THe speaker setting works just fine on all ports so I guess the DIgital audio portion of this board is malfunctioning. I will try to get an audio card to work as a last resort, failing that I guess I have to replace the motherboard. Not looking forward to that!
Thanks for your help in sorting out this mess, I hope I can return the favor sometime.