Hello Freon Champs,
They've made the necessary modification to the linux kernel (03.20.00.13). Specifically enabling DIT (S/PDIF) output in davinci-mcasp.c and have acheived a recognizable audio out. The issue is that it plays too fast (or too slow, depending on the input sample rate).
The S/PDIF must transmit data at a clock rate of 128*sample rate. This clock is either externally sourced (from ACLKX) or internally generated and derived from the high freq clock (AHCLKX). Either way, it's not currently correct.
What it seems to me we ought to be doing is changing either AHCLKX so we can divide down to a correct out clock or change ACLKX directly. This is the part I am having trouble with and ther doesn't seem to be any support for this in davinci-mcasp.c.