USB Ext Sound Card Vs. Squeebox

Thank you - this is very helpful. I will try this.
I've heard FLAC files are the way to go but not supported by iTunes is major drawback.

If you are using iTunes on a Mac there is no reason to use FLAC. Use Apple Lossless.

FLAC is a preferred solution for PCs because for whatever reason iTunes does not work as consistently in Windows/Vista.

Both Apple Lossless and FLAC do the same thing.

Since you are a Mac guy, you have nothing to gain.

I followed your instructions and the USB connection to the Powerbook works - fantastically easy setup following your instructions. I then tried using a Toslink output from an Apple Airport Express I have been using to-date prior to the Paradisea. The Toslink connection did not work. Furthermore, on the back of the Paridisea is a small toggle switch that appears to be an input selector for the Paradisea, with one side pointing towards the toslink and one towards the USB/RCA inputs. The Toslink didn't work regardless of where the toggle was and the USB worked with the toggle on both options. This makes me wonder if the Toslink input works at all. Any suggestions?
Another question - does it matter how long a USB chord one uses is?
Final question - the Paradisea is picking up radio signals. I tried pulling the ground in the power chord by using an adapter but still picking up faint radio signals when the music is quiet/off in the Paradisea.
Many thanks for all the help.
Lloyd

The USB spec is 15' before you need to add a repeater. One reason for this is that USB carries 5v and one can assume that the voltage drops below spec at that distance.

I highly recommend the Opticis Fiber Optic USB cable to anyone who wants to run past 15'. It is easy to route and completely disconnects the PC from the DAC (since fiber does not carry voltage) For sure this eliminates ground loops, and may or may not eliminate radio stations....

You do need a power supply at the receiving end - most of us use a USB 5v battery instead of the provided switching power supply.