Yes, you should be able to do this. I have not done this myself but I recall reading that the digital connection supported s/pdif even though it uses XLR connectors.

In order to use a sequencer with it, you need a midi interface. You can get by using a midi interface on your soundcard (I don't know if the Delta has one but Soundblasters do) but I would recommend a dedicated midi interface as they generally have better midi timing.

All you need is the appropriate midi cables and you're good to go.