I followed the instructions that dangardner wrote and I got the Wolfson Line out playing, however.
At first I thought that I had real good quality sound but after listening to a couple of songs I realized something was wrong with the channel output.
Sometimes voices or certain instruments would completely fade away as If they distanted very far away from the rest of the band.
To make sure I wasn't listening to a special version of a song I played the same file throug my Imac with external audio controller and the Audio output on the Pi and both ways it played fine.
I t looks like there is crostalk between the left and the right channel and this crosstalk is out of phase. It also seems is a certain frequency range because this does not apply to the bass range (otherwise I would have almost no bass).
Does anyone else have this problem? (The effect is very easy to spot if you play old ping=pong stereo recordings, I my case "Here Comes the Sun" from Abbey Road. George Harrisons voice should come from one speaker only but with the Raspi and the Wolfson card it glides between the speakers. This must be an Issue with the Wolfson Card (or driver / settings ) because when I use the Audio out on the Raspi there is no issue with the stereo (but the sound is pretty bad of course)