Digital signal does not get recognized by the audio source

One of the five horizontal LED indicators should be lit, indicating the digital sampling rate.

Note:
For 32kHz no LED will be lit, but the DacMagic 100 will still operate.

Try this solution

Change the digital output on the audio source

Make sure that the digital output from the DVD player, Skybox (or any other source) is set to two-channel PCM and not other outputs such as Dolby Digital, multichannel, bitstream, etc.

The "Incoming Sample Rate" LED lights should be on and will indicate the digital sampling frequency.

Note: For 32kHz no LED will be lit, but the DacMagic 200M will still operate.