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
The explanation is lower jitter. The more you spend on the USB converter, the better the SQ.

Read the reviews.

The jitter of the clock in all digital systems is the most important thing to optimize. Dont scrimp on this because there is nothing downstream that will fix it. Not even reclocking in the DAC.

Steve N.
Empirical Audio
Unless your computer is in the same room with your stereo (why??) then avoid using the computer as a source component. Stream the music over your home network instead, so some device that outputs SPDIF to your DAC.

I use the Squeezebox system myself and love it, but if you insist on iTunes, you do have some options. The Apple Airport Express will do exactly this - you can stream your iTunes collection to the AE, and the AE device will output a toslink signal to your DAC. Note that the AE requires a special "mini" toslink connector.
Also, if you insist on using your computer directly as an audio source, do not use the onboard SPDIF output, or even a USB device. Use only a Firewire device!

Firewire supports isochronous data transfers - critical to a clocked data stream like SPDIF. USB does not support this!
Lupin - Async USB works great, and furthermore beats Firewire.

Read this:

....http://www.audiocircle.com/index.php?topic=105049.msg1159717#msg1159717...........

Firewire is dead!!

Async USB also beats Sonos, Squeezebox Touch, Soolos and other servers. Some servers now allow for async USB converters to be used with them, so this is a good development.

Steve N.
Empirical Audio