Hi,
Have a look at
http://ec2-122-248-210-243.ap-southeast ... .php/SPDIF if you want to avoid that whole messy D to A stuff (at least for proof of concept).
I also have a project that plays back 16bit stereo data from the nexys2's onboard flash through dual-1bit DACs. You could use that for the initial testing / prototyping.
Also look at
http://www.beis.de/Elektronik/DPLCM/DPLCM.html if S/PDIF interests you - after all your PC's motherboard might have an optical, coax or TTL audio output.
Have a look at this thread
http://forums.xilinx.com/t5/Virtex-Fami ... td-p/20659 for details on FFT IP cores and so on - the most useful being the IP core's datasheet
http://www.xilinx.com/support/documenta ... 8_xfft.pdf.
I guess you are probably looking to use the VGA output of the Nexys2 to display the FFT data.... It sounds like an interesting project!
Mike