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Typically you want to reduce the number of D/A and A/D converstions (that's digital to analog or vice versa). Guitar to POD = 1 A/D, then POD to 1/4" out = another D/A, the into your PC = another A/D. Whereas going SPDIF you only have the guitar to POD A/D, that's it. You stay digital the whole time, as long as your soundcard can handle 24 bit. don't know if it produces an audible difference in sound quality, but I figure all those conversions can't be helping...less is more.
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