Computer output to DAC, which route?


I have disbanded my main system because I am using my computer system more and more. I am going to purchase an outboard DAC for my computer, but I want to know something:
My computer comes equipped with COAX and TOSLINK outputs on the motherboard. Should I use one of those or use a DAC with a USB connection? WHat are the pluses and minuses of each way if any? I am using typical Altec Lansing speakers (good for what they are) but will probably move up to active Dynaudio monitors in the future. All music is sourced from itunes in either AAC or apple lossless formats.

Thanks in advance!
phoenix469
Nolitan - according to the review on Computer Audiophile, yes, the Halide Bridge is asynchoronous.

Let us know if you end up trying it and how you like it.
I see you are recom..wav files thru your mac mini..I just got a mac mini and had over 1 tb of lossless wav files that play thue itunes but i can not get the files organized thru itunes...ie artist song and album all mixed as one on itunes..tries to you us tuneup but that didnt work ..help please !
I had to re rip everything into AIFF for my new Mac Mini......couldnt get the metadata to transfer from my original Windows Itunes to Macbook pro with windows via Parallels Itunes then finally to Mac Mini Lion Itunes (non windows)

The John Kenny MK3 USB to SPDIF is a stellar product......beats AP2 and Halide in reviews I see........no beating it unless you plump for a Offramp with turboclocks......4x the price and only subjectively better.
Wow! Just about everything you've posted matches my own situation. Even the desktop speakers. Apart from the MB outs, though.

If a good, (read really good) USB or 1394 DAC is purchased, ala Wavelength; Weiss, etc, that route is definitely a solution whorthwhile.

I use a Bel Canto DAC 3.0.

I've tried each and every route to feed it likewise files as you described. Ultimately using the Lynx AES16 PCI eXPRESS CARD and AES connection in conjunction with Lynx own ASIO out & either Fubar or JR MC (current versions), to achieve my best sound thru a MAIN audio or HT system.

Many of my posts on PC audio point to my above comments if you care to peruse them, or if you can presently. I'm having issues with this new site upgrade personally.

Each link in that signal path from the cable, interface, and output device & DAC will help or hinder your ability to achieve a great solution.

For ex. I could upgrade my cable from the Lynx to the BC DAC3, as I feel it is my weakest link. Naturally upgrading the BC DAC3 to 3.5 status would likely be as well a fine move. Thereafter, all of the downstream components fall into line for consideration to replace or update.

The DAC IMHO is the true key.

That said, each segment thereafter really does matter.

Final note.... Multi interface DACs are in general better sounding using one of it's interfaces over another. Mine is limited to 16/44 on USB I think, so for me, USB out is not a solution. Coax sounded better than TOS, and AES better still than any others. So it behoves you to experiement for yourself.... unless of course you select a dedicated interfaced DAC. Then only the cable itself requires messin' around with.

Good luck.