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device with optical input and 5.1 bare wire outputs

lunarlyte

I am looking for a small receiver/amp or something that has optical input from pc and with bare wires +/- outputs to speakers. Does anyone have any ideas? need a make and model or even a link.

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Small? Not possible. You want a full blown amp/receiver combo. You're taking a digital signal and turning into real audio outputs that can power full size speakers.

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I guess relatively small. maybe thin receiver size. I just don't want something that is full blown home theater receiver size. the particular inputs and output is more important than the size.

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The real challenge is the form factor you are asking for.  There are a thousand options in a full size receiver, not so many in smaller ones.  You might find something like that separate but I think your best bet is going to be in one of the HTiB (Home Theater in a Box), that includes a slim line receiver and a bunch of cheap cube speakers.  Then you just use your own speakers.  Something like this $159 RCA system, perhaps.  Just be advised that not all such systems have optical IN, so read the specs carefully:  http://www.newegg.com/Product/Product.aspx?Item=0W3-000J-00001

The Marantz NR1403 might be one possible solution but is nearly $400 (Amazon):  http://www.amazon.com/Marantz-NR1403-5-1-Channel-Theater-Receiver/dp/B0081N916M/ref=sr_1_5?s=aht&ie=UTF8&qid=1424025064&sr=1-5

Creek, NAD and Rotel all used to have options in this form factor a decade ago but how available they are today is going to take some detective work.

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I was trying to not go the HTiB route but I think you are right and that would most likely be my best option. I might just tear open my old logitech z-5500 and see if I can get it to work. That's why I was wondering about this. I have all the speakers mounted and didn't want to change them, just needed an interface between pc and speakers. 

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that sewell DAC looks intriguing but that pro grade amp is not what I am looking for. I really don't want this project to cost an arm and a leg, but thanks for the links.

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