PC Laptop to MSB Gold DAC Suggestions?

I have been ripping wav files for a year now with WMP. My laptop is connected to an M-Audio "Audiophile" USB, which, in turn, is connected to my Dyna SCA 35 (slightly modified)vintage tube amp. Though the sound is decent, it is not as good as playing a cd on a Pioneer PD-M403, not a high end player. Just purchased used an MSB Gold DAC, modified, with the separate power supply. (See: http://cgi.audiogon.com/cgi-bin/cl.pl?dgtlconv&1234280142)I have not received the DAC yet.In setting this system up am planning to use the M-Audio SPDIF output to the MSB. Am wondering: 1. Do I need something to reduce jitter between the M-Audio and the MSB. Have looked at the Monarchy Digital Processor and the Genisis Digital Lens, which may be out of my price range. Will something to deal with jitter be necessary or will the dac handle it?
2. Interconnects. I have read that with analogue devices, turntable to amp, etc., a coat hanger works as well as the most expensive cables. In short, a lot of money is wasted on cables. Don't know it this is true. Thoughts? Then there's the digital stuff. How concerned should I be regarding the digital devices? (M-Audio to Jitter reducer and/or MSB?)3. Are there any issues using Windows Media Player as the program to serve up the music if I rip files using a program like Exact Audio Copy.

I'm sorta new with this stuff though I've been ripping music for years.What got me started down the road of wanting the best music system I can afford (moderate in the extreme)was the acquisition of the Dyna amp about a year ago.Didn't know I'd been doing the equivalent of McDonalds musically! Thanks in advance for your reply.
Very much appreciate your reply. Somewhere in the back of my mind I've wondered about the M-Audio translation of usb to spdif. I think I'll start a new thread just asking about that issue.

Will research the Meridian and the cables you're using.

I have a similar setup to what you are going to be using. I have an MSB Gold Link III with powerbase, an M-Audio Audiophile USB, and an XP laptop. I use USB from laptop to the maudio, then into a Meridian 518 digital processor, which feeds the dac. The sound is decent, but not quite as good as a meridian 500 transport into the same 518. I'm guessing that the maudio is the weak point in the chain. You can get a used 518 for around $500 here, and it does a lot more than just dejittering. I use an audioquest vdm-5 from the maudio, and an MIT aes/ebu from the 518 into the msb dac. It certainly sounds a lot cleaner and tighter with the 518 in the mix.

I would recommend using foobar as a player and bypassing kmixer by using maudio ASIO, or disabling kmixer altogether. I've found that WMP does not sound nearly as good as foobar, unless you're using vista. I've also tried this combo with the msb digital director dejitter device, but the 518 sounds better and is more flexible.