Hi Mkugu! Welcome to VoipUser.
You really don't want the detailed explanation of the difference between FXO and FXS, do you? Cisco do one of those nice 60 page white papers on it, perfect for leaving on a coffee table to blot up spilt coffee and impress visitors!
The practical difference is that an FXS card supplies line voltage to an analogue phone circuit. The FXO receives line voltage. Which means you cannot plug two FXS cards together (something breaks) or two FXO cards together (nothing happens).
To plug an FXS port into a PBX, one would normally attach it to a PBX trunk port (same ports as the PSTN lines are attached to). An FXO would attach to an extension port.
As the PSTN is expected to supply line voltage, you can only use an FXO port for direct connection.
E&M is a signaling protocol used in private ccts and connections to routers. The E stands for EAR and the M mouth
It comes in 2 and 4 wire alog variaties as well as a Digital version used mainly on T1 links. Cisco does use alog E&M connections to their routers. Of the Alog connections for PBX to Routers its the most reliable, On par with AC15 which is not as widely avalible outside the UK.