Hi - glad to be of help.
Not sure what John is doing, didn't see anything obvious on the Exemplar website.
Just to be clear, AES/EBU is a pro (balanced using XLRs) signal format like SPDIF. It is a long established high end way to go - but requires an appropriate sound card, DAC and dollars.
USB is an alternative way of getting data out of a computer after it is retrieved from the drive.
Basically wherever the drive is, the data has to come back to the computer so that it can go out via a comm(unication) port - ie USB, Ethernet, Firewire, AES, serial, parallel etc Depending on the computer some of this may be built in, some of it may require a specialized card (ie AES/EBU)
But there is a much bigger issue that has to be dealt with.
I do not know of any drives (not that I have ever made a study) that can output a specific file via USB directly to a DAC. The USB ports on external drives by LaCie, Maxtor etc are all controlled by the computer and as far as I know are solely used to transfer data between drives. (They have simply chosen USB instead of SCSI (old school), Firewire or these days SATA.
The only way I know to use a remote drive is to use what is called a NAS - network area storage device. Basically a NAS is a stack of drives with an intelligent controller hanging on an ethernet network. This works well with a device like a Squeezebox which is also Ethernet based and has the ability to access the drive and retrieve specific files. Since it is an ethernet network the pieces do not need to be co-located. Depending on your situation this could be pretty cost effective since a terrabyte NAS rig is now under a grand.(Buffalo seems to be the low end leader)
Short of a NAS, the solution is to leave the drive by your computer and co-locate either a network/wifi device like the Squeezebox with the DAC - and go from the SB into the DAC; or Airport Express (also wifi) - and go Toslink into the DAC.
There are a couple of very good threads running concurrently with this one that are worth reviewing.
Sorry if this is a bit confusing - its really plug and play, more a case of identifying the square pegs and round holes.