iPod to Home Stereo

I was wondering if it is possible to hook an iPod up to a surround sound receiver using a digital audio cable such as optical or digital coaxial. I'm just wanting to get the best possible sound from it when hooked up to the stereo surround system. The composite (red/white) cables do not output the best sound. The volume seems lower. Or maybe its just the iPod output.
I also tried with a different mp3 player, but the volume from the stereo system just did not seem as loud as it would if I were playing a CD.

Thanks in advance!

Carl

 

Sorry if my post is confusing. Basically, all I want to know is how I can hook an iPod to my home stereo and get the same volume and quality out of the speakers as I would if I were playing a CD.

Thanks again,

Carl

 

FM Transmitter, AV cable

 

Yes, as I said in my first post, I have already tried using composite (A/V) cables. The sound was not as loud and powerful as from a CD. I want to get the same volume and quality out of the speakers as I would if I were playing a CD. Can I use digital audio cables somehow? Or is there something else I'm doing wrong? Or is it just not possible to get CD quality sound from an iPod hooked to a home stereo???

Thanks,

~Carl