Sound levels: Apple lossless vs. original CD

I have been following many threads on this as I try to set up my computer based server system. I have gone out and purchased a Mac in order to simplify all the issues vs. a PC based system.

I have been recording in Apple lossless format and I find there is a noticable difference with lower quality as compared with my inexpensive CD player that I am using (an inexpensive Panasonic).

I am playing both methods back through a DAC - Musical Fidelity X-Dac v8 (the latest model).

The data stream from the CD player is via optical output miniplug - through an optical converter to digital coax cable (there is no cable available directly from optical mini to coax). The data stream from the Mac is via USB output to the DAC USB input.

First - the music via the inexpensive CD player sounds better. There is a noticable difference in the voices being more forward from the music (less compressed?). The Mac sounds excellent - but the CD still sounds better.

Second - the sound level from the CD player is much louder (perhaps 25-35%% louder). If I am streaming digital bits from both sources, why is the CD player much louder than the Mac? This doesnt make sense to me??

Lastly - would there be any reason to copy in AIFF rather than Apple lossless? It seems now - but I just want to get the lastest view.

Any help is appreciated ! Thanks !