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
Thanks for that input Thesauce! I am just now looking at the UD-10 as the interface between my laptop and the main system. My only concern is that the UD-10 is not a 2.0 USB. Maybe that's not an issue?? I'm having the laptop modified to handle my library - only . . .and was going to have them install a couple of 2.0 ports. Your thoughts? Puerto
Puerto,

No need for the USB 2.0. USB 1 has more than enough bandwidth to handle 2 channel audio.

Enjoy!
Thesauce - USB 1.1 supports streaming audio, but most USB 1.1 interface chips (in the computer) will probably create more latency than USB 2.0 chips, so eliminating pops and ticks may be more difficult with USB 1.1.

Steve N.
Empirical Audio
Ok, going to place the question here. MacMini has no outputs except the mini RCA jacks it looks like. Have not bought one was thinking this might be one way to go. Was thinking of using a Mac Mini with itunes. But will I get decent sound out of the Mac/
Inwanw - why not use the USB outputs for audio? With a converter or USB DAC based on the TAS1020 the sound quality can be excellent.

Steve N.
Empirical Audio