I use a Bel Canto Dac 2 with my Modwright SWL 9.0 SE pre amp, Channel Island D-200 power amps and Salk HT3's Veracity speakers and it sounds darn good. It diffently improves on the RCA outs. use a good Digal cable, I use a analysis Plus cable.
Stick with the onboard outputs unless you already have an outboard DAC to run it into.
Any nonlinearities of deficiencies in the onboard DAC will already be SWAMPED by the poor nature of the XM medium itself. The DAC component of the Polk is more than capable of complete transparency where XM is concerned, unless you're looking for something to take the edge off the aliasing distortion.. :)
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