Computer output to DAC, which route?


I have disbanded my main system because I am using my computer system more and more. I am going to purchase an outboard DAC for my computer, but I want to know something:
My computer comes equipped with COAX and TOSLINK outputs on the motherboard. Should I use one of those or use a DAC with a USB connection? WHat are the pluses and minuses of each way if any? I am using typical Altec Lansing speakers (good for what they are) but will probably move up to active Dynaudio monitors in the future. All music is sourced from itunes in either AAC or apple lossless formats.

Thanks in advance!
phoenix469
I'm in a similar situation... I have a new Macbook Pro and the DAC from my Audio Aero Capitol with SPDIF inputs. I'm leaning towards getting the Halide Design USB-SPDIF Bridge ($450) along with Pure Music software that works with I-Tunes($129). I have not pulled the trigger yet, but like the idea of the Halide Bridge because it's a USB/SPDIF convertor and a digital cable all-in-one... so no extra digital cable is required, unlike most other SPDIF convertors.

Would appreciate input from users of the Halide Bridge.
is the Halide Bridge Asynchoronous ?
In the same shoes and looking for some advice.
Although at the moment, i'm not too keen on buying a USB Dac only. I would prefer to use my Dacs that i already have.
thanks.
Nolitan - according to the review on Computer Audiophile, yes, the Halide Bridge is asynchoronous.

Let us know if you end up trying it and how you like it.
I see you are recom..wav files thru your mac mini..I just got a mac mini and had over 1 tb of lossless wav files that play thue itunes but i can not get the files organized thru itunes...ie artist song and album all mixed as one on itunes..tries to you us tuneup but that didnt work ..help please !
I had to re rip everything into AIFF for my new Mac Mini......couldnt get the metadata to transfer from my original Windows Itunes to Macbook pro with windows via Parallels Itunes then finally to Mac Mini Lion Itunes (non windows)

The John Kenny MK3 USB to SPDIF is a stellar product......beats AP2 and Halide in reviews I see........no beating it unless you plump for a Offramp with turboclocks......4x the price and only subjectively better.