I was very skeptical when buying this spliiter/switch after seeing so many bad reviews. It worked for me after little trial and error and here is what I found. For all those who complained that these splitters/switches do not work, this is what you need to do to get it right. I bought this splitter from eforcity, so I cannot say about those shipped by other sellers.... It works both ways i.e. as a splitter and as a switch.1. For it to act as a switch, the critical thing is that only one source needs to be ON. Some sources send signal even when on stand by mode. To check whether it sends out signal, just plug one end of the toslink cable into port of the source(cable box, ps3, etc) and check the other end for red light. when on stand by, the light should not be lit.
2. The second most important thing for this splitter/switch to work is the length of the cables used. I used all 1.5 ft cables and they work perfectly. Earlier I had 3 ft cables coming out of the cable box and ps3 to the splitter and then 1.5 ft cable to the home theater. The ps3 did not work but cable box worked (not consistently though) as the signal attenuated too much by the time it reached the home theater receiver. I am not sure if there is a shorter cable than 1.5 ft and it would be great if you do have them. 1.5 ft cables work fine. I got the 1.5 ft cables from RiteAV.
Finally, the basic test to see if it works is to check for the red light after the connections. Connect in the way shown below and check for the light near the * before connecting to the receiver. Make sure only one source is ON at a time. If you see light and it still does not work after plugging into the receiver then it means that the signal attenuated too much and your receiver cannot pick it.
source 1 -->
...................splitter -->* receiver
source 2 -->
--> = 1.5 ft toslink cable
ignore the dots...
Good luck!.I read all the responses posted in the comments (turn off one device to use the other) and it works perfect!
Buy TosLink 1 x 2 Optical Audio Splitter Adapter Now
In looking around, it seemed that some of these splitters had issues when used to connect 2 devices to 1 input. As long as the "other" device is powered off when you're using the shared input, it totally works.When our blu-ray is used, the Xbox360 is off and vice-versa.
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If you are using this to connect 2 devices to one receiver then you need to make sure one device is off while you are using the other device. I use this splitter to connect my Xbox 360 and my PC to my PX5's. I also have to turn off the receiver and turn it back on when switching devices or it will not pick up the signal from the other device. Works great if you follow those simple rules. If both of your devices stay on this will not work for you. If you can't turn off one device then this will not work for you.I'm pretty happy with this product. It's an inexpensive solution to my problem of having only one optical input on my AV Receiver and needing to connect both my PS3 and Apple TV to it. Both AppleTV and PS3 are connected the end of the splitter with two inputs, and then the other end of the splitter with only one output is connected to the AV Receiver. It only works when only one of the devices is off and not transmitting signal at the same time as the other one, but luckily both these devices don't transmit signal when they're in sleep mode.

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