Help on Optimizing Dedicated PC as Music Server

Just finished assembling a PC to be used as a dedicated music server with a minimalist approach. Parts include:

intel i7 4470k 3.5Ghz, MSI Z87-G45 motherboard with(build-in S/pdif output), 2 x 4GB DDR Corsair RAM, Antec Mid tower, 120GB SSD HD for OS, 3TB HD for music storage, Corsair CX500 PS.

Window 7 Pro service pack 1, 64 bit. Have not updated after fresh OS installation. Do I need to?
JRiver ver.19. Gizmo & JRiver for Android Tablet

Here are my concerns:

- should i do/or need to do a Windows update
- should I use JPlay with JRiver
- are there settings that I need to change/perform on the PC to make the most for audio
- any "tweaks" that can be done to lower noise, vibration,...etc to improve performance/SQ
- do I need a sound card

My DAC is a the vulnerable Mark Levinson 360, capable to (24/96kHz). For now I plan to connect directly to motherboard output S/pdif. Will entertain USB/S/pdif converter at a later time.

Thank you.