Adding a Squeezebox - Upgrading Path?


I am thinking of getting a Squeezebox for my source, cd's are being ripped to Apple Lossless. Would hooking this Squeezebox up to my used Theta Pro Progency DAC make a difference or is this technology surpassed by the stand alone Squeezebox

This is for a small living room system that I am slowly upgrading. Currently it is older Paradigm Titan Monitor speakers, powered by a 10 year old Onkyo receiver and fed by an Onkyo 6 disc changer which has an outboard DAC Theta Pro Progency that we picked up (used) several years ago.

Main system is Vandersteen 2ceSignatures, Classe CAP 151 integrated amp and Classe 1.5 cd player. Vandersteens are too big for the living room.
Can the paradigms handle some major upgrading or should I be looking at speakers as well? We have been listening to Dali Ikon 6's and we're also fond of Totems. Major issue here is that the speaker needs to be quite close to the wall in this room...pulling the Titans another 6 inches from the wall,now they are about 8" from the wall has actually been helpful.

Have been away from reading all the audio mags for a few years and am amazed by the changes such as pc audio........ah yes, the audio bug has bitten again!
Thanks for any and all suggestions..
audiowoman
Okay, I think I may still be wired up wrong here! Originally I hooked the Theta to the integrated amp via Kimber Kable interconnect and then the Theta and the Squeezebox via digital coax. The result was no sound at all. Now I have the Squeezebox hooked to the Theta with the digital coax and the Squeezebox hooked into the integrated amp with the Kimber Kable interconnect. This works, but I can detect no difference between the Squeezebox alone and with the Theta hooked up......now either the Theta is not making a significant difference here or I have something hooked up wrong.....earlier responses suggested to hook the theta outputs to the amp but I got no sound at all......please help!
"Originally I hooked the Theta to the integrated amp via Kimber Kable interconnect and then the Theta and the Squeezebox via digital coax."

This sounds like the right connections to get the squeezebox to feed the DAC.

Not sure why it didn't work though. Some sort of setup/configuration on Squeezebox and/or DAC I'm guessing.
With that set up there was no sound and the blue light on the Theta did not light up indicated that it was locked on.

with my current configuration both blue lights are lit up on the Theta.
I guess since it works all is well, just leaves a lingering doubt for me if the Theta is actually engaged here, since pulling the coax out of the Squeezebox makes no discernable difference to the sound.....
Okay here is your Monday night laugh at the "girl"!!!

I took what Mapman had to say and checked everything out again when I got home tonight. I rehooked everything as he said it should be and still no sound....looked things over carefully again and "big red face now" found that my Theta was set on the toslink setting rather than the coax setting of the digital outputs......pressed that button in and voila great sound happening.......yes, the theta makes a very discernable difference to the sound, major impact...

you know that Squeezebox on its own is not half bad, but the Theta brings the grin back to my face, albeit my red face....
thanks mapman!

Happy Audiowoman.