GezzaB1:
Many thanks for your reply. Sounds like it's definitely worth doing then. Can you or anyone recommend a particular usb soundcard with digital optical out?
Cheers.
It shouldn't matter too much as the soundcard's 'sound' will be bypassed straight to the DAC to work it's magic.
I would also download something like J River Media Center jukebox. I use the Media Center which costs $50 but the Jukebox is just for music and is (was anyway) free. This enables you to get a great visual display for one, of all the album artwork and artists' details. And more importantly, it has an in built ASIO and WASAPI plug in. These will make sure that your music is sent to the DAC without any processing or bit tampering. Basically bit perfect. Using iTunes or WMP, you will not get this.