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
go USB with quality USB dac. My personal opinion prefer NOS dac. I am using mac. I now prefer mac and USB dac to my Cyrus cdp 8x. Not to mention the trouble of changing CDs. Just few click away w remote(iPhone). Also go with wav. I found them better than aif though aif support artwork with itune while wav not.
Happy listening
Milen007 - There is no difference in the actual data between WAV and AIF/AIFF hence there is no difference in sound qualty. They are both uncompressed formats.

AFF is big-endian and WAV is little-endian (although there are little-endian aiff's out there)

http://en.wikipedia.org/wiki/Endianness
If you are using toslink/spdif out of the computer into a processor then you are using the DAC of the processor.

The signal to the processor is pure digital, the DAC of computer does not come into play.

With a good quality optical/coax cable there should be no loss.
Hey Audioengr.

So if you're using mac and itune. use the USB converter then add the dac..

quite hard concepts to swallow..

LOL

thanks
Use a firewire device. Firewire is the best connection protocol on the planet and their are lots of great DAC options available.

Weiss firewire DACs

Echo Audio firewire DACs

just to name a few. Excellent performance for the price from the ECHO firewire interfaces.

http://www.home-speaker.net/diyhometheaterspeaker.html