VISTA users.

what do you mean by "the Digital output device(spdif) output"?

From an internal soundcard?

No not necessarily....well maybe. If you do not already have the Sigmatel High Definition CODEC in your sound device menu. You can go here and download the driver. That's if you have an integrated Intel Desktop Board with Sigmatel in your PC. The CODEC allows you to choose from 8 different sampling rates 16 and 24 bit from 44.1kHz , 48 kHz, 96 kHz up to 192 kHz.

Does your PC have a coax or optical output built in?

I see... Well, that's the onboard or internal soundcard you are talking about.

People have been saying that you get better sound with USB out to USB Device to outboard DAC.

My question is on that route...

Can you tell me little more about your "using the USB device output in the sound device menu"?

What device are you using? You still don't need a driver for the USB device? what's sound device menu?

I use a USB Dac.So no need for the extra USB converter. I pick USB Audio Device as my default output device in the sound device menu. I have used in the past the Trends Audio UD-10 USB converter. It doesn't need any special drivers installed either. The PC recognizes it from the start.

The sound device menu is in the right hand corner of your screen. Just right click on the speaker icon and left click on sound devices. This will bring up the menu.

The on board HD sound card codec is good enough, to make it very difficult to hear a major sound quality difference. They do sound different, but the on board is really not all that bad.

When I feel experimental, I run a toslink and USB cable to my Dac from the PC. I can switch from USB to spdif at will.

I see. It doesn't detect my M-Audio Transit. I guess that's one problem.