Thanks all for input, and Merry Christmas. Was planning on buying the $499 Mac Mini with 500 MB 5400 RPM drive plus $100 memory upgrade to 8GB, but then I found a refurb Mac Mini with 1TB fusion drive and 16GB for $700 - gonna try the mini-Toslink to Toslink without an external dac for now and see how it sounds.
mesch - can you expand on your last comment - "if using the DAC within your AVR is preferable, then a USB/SPDIF is your best option going from the MAC mini" -- better than the straight mini-toslink to toslink cable, and if so why?
mbaudio02 - thanks for info and Clemetine tip - will take a look.