Benchmark DAC1 Connecting and cables

Just purchased used Benchmark. I don't have a clue as to how to connect it. I'm using my CDP (Micromega-Stage 3). Okay, I read the User's Manual, didn't help! There are many possible connections but I'm most familiar with the unbalanced RCA's. There's also the balanced XLR type connectors. I thought I read somewhere that the XLR provided the best sound? There seems to be a limited availability of XLR to RCA terminations? Question: What is best connection and how is it done? Step by step, little steps, please, I'm a DAC beginner! I have a standard stereo, amp, preamp, CD player, speakers. Can someone enlighten me, please? And many thanks for your patience and response.
You need 75ohm digital coax RCA-to-BNC cable like this:

This cable should be either very short (< 1ft) or at least 1.5m (there are technical reasons for that). Select coax switch position on the front panel of DAC1.

Benchmark DAC1 has two sets of outputs RCA or XLR. If your preamp or amp has already XLR inputs - get XLR interconnect. Otherwise use RCA outputs.

There is small switch on the back of DAC1. It allows to choose Calibrated-Off-Variable output. Use "Calibrated" when connecting to preamp with volume control, Variable when connecting directly to power amp (using DAC1 volume control) or "Off" when you listen on the headphones.

In Calibrated mode two 10-turn trimpots marked L and R allow to fine trim output levels. Adjust them if you have to.

If you decide to connect your DAC1 directly to power amp (as I did) select "Variable" position and protect switch from accidental change (I inserted piece of plastic into the hole) since it will put max level directly to power amp in "Calibrated" position.