The Squeezebox is an excellent unit for streaming audio data from a computer to a stereo system.
You have the process correct, except for the "SQ is ethernet connected to a fast external hard drive and pulls the files out of HD". (I believe there is an NAS that can be rigged to work with the Squeezebox without an intervening computer.) Rather, attach your laptop to a large external drive, install the Slimserver software on your laptop (it works on Mac, Linux, and Windows), configure your wireless (or wired) ethernet connection to communicate between the laptop and SQ, connect the optical digital out from the SQ to the DAC, and you're done!
You can control the volume both from the Squeezebox (digital volume control) or the preamp (analog volume control). I prefer to simplify it and make a single point to control the volume for everything (ie, the preamp) and leave the Squeezebox volume at max.
Also, you are correct that you can interact with the Squeezebox using its provide remote control, or you can use the laptop (this provides more functionality in my opinion).
Good luck!
Michael
You have the process correct, except for the "SQ is ethernet connected to a fast external hard drive and pulls the files out of HD". (I believe there is an NAS that can be rigged to work with the Squeezebox without an intervening computer.) Rather, attach your laptop to a large external drive, install the Slimserver software on your laptop (it works on Mac, Linux, and Windows), configure your wireless (or wired) ethernet connection to communicate between the laptop and SQ, connect the optical digital out from the SQ to the DAC, and you're done!
You can control the volume both from the Squeezebox (digital volume control) or the preamp (analog volume control). I prefer to simplify it and make a single point to control the volume for everything (ie, the preamp) and leave the Squeezebox volume at max.
Also, you are correct that you can interact with the Squeezebox using its provide remote control, or you can use the laptop (this provides more functionality in my opinion).
Good luck!
Michael