The volume doesn't work on my macbook anymore, when i try and turn it up the volume indicator isnt highlighted and there is a little circle with a line through it, also my headphone jack has a red light coming out of it, NEED HELP!
You can't change the volume when optical out is enabled; what I would suggest is have it checked out by Apple, because the light shouldn't be on, unless an Toslink cable is connected.
This happened on a friend's macbook, he often removed cables from the output by tugging at the cable rather than pulling it straight out by the plug and broke the output. It still works with headphones ,but the plug moves around in the socket and has to be held in the right position to work.