I just compared it to the an official HD AV Pack on a Samsung LCD and noticed it had some subtle static interference in the picture, most noticeable on the solid green Xbox menu.
Any clue on what could be causing the interference? Could it be the 5V line that is powering the analog spdif>optical converter inside? Or could it be just an issue with the LCD display (I've yet to compare them on a CRT)?
If the interference is caused by the Toslink adapter, maybe I should open it, remove the optical adapter, and add a standard RCA connector. Not sure if it will be worth it since I doubt I can get much more than $15 for it.