Computer audio question - sound card DAC or reciever DAC?

[romnation]

I have a $60 XFI Xtrememusic sound card. I have a $350 Denon-AVR688 home theater receiver that I am going to be using for all my music I'm playing through the computer. Would it be better to connect it via analog (RCA plugs?) which would be using the DAC on my XFI card, or would it be best to connect it with an optical cable so it uses the DAC built into my Denon amp?

I tried testing the sound on both, and they sound about the same, but I think I'm slightly leaning towards using the Denon amp's DAC. I don't know if it's just me imagining the difference though lol, they're both very similar. Is optical the way to go?

[surayne]

I had a similar setup and used 2 sets of connections - both a coaxial as well as a full set of analogue outs (3 sets of 3.5mm to RCA connectors, hooked up to the 7.1 input of the receiver).
I like to listen to my music in surround and I found that the upmixing of MP3s was done much better by the sound card and its software, rather than the receiver. The digital out was for movies, to allow a PCM stream for DTS or Dolby Digital.
Your opinion may differ - if you're playing music in plain stereo the receiver may be better. I'd try both to see which you prefer, there isn't really a right or wrong answer here, it's what you prefer!