There was a thread on this topic a week or so ago. With a Bel Canto DAC1, I got better results with a transport and coax cable than DVD and toslink. I use a Cardas Lightening.
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Both of the above are correct...the Cardas Lightning 15, Elco Ultimate (the silver one), and the Acoustic Zen MC2 are my faves. I still haven't picked a favorite yet, but I think I'm leaning towards the Elco. It's similar to the Cardas, but maybe a bit more detailed (also possibly a bit more forward...I haven't A/B'd them yet). THe Acoustic Zen sounds very nice too, but it's a bit more laid back in the mids. I'm not familiar with your DAC or transport, so you may want to try them yourself to see which you prefer. The Apogee Wyde-Eye is also excellent for $35 (but not as good as the above three...the soundstage is a bit more cluttered, but it's very musical).
I did A/B the Elco and Acoustic Zen (months ago). The Elco seemed to be a bit more up-front and feature the mids more than the Zen. The Zen's mids were more recessed and it may have had lower bass (not necessarily more prominent...just lower in frequency). I preferred the Elco in my system, but it really is completely dependent on music tastes and your system. The Zen would probably sound perfect in a system that is already a bit forward. It's a great sounding cable in every way...it's just a little laid back in my system. I didn't A/B the Cardas with either, but I'd say it is more similar to the Elco as far as balance goes. The Elco gives the impression of being more detailed (though the Cardas is very detailed), though it doesn't seem to capture the lowest bass octaves (which is okay, cuz my speakers stop at 35hz). I'm not sure if the perceived detail is due to accentuated highs or not. It sounded a bit edgy at first, but that wore off after using it for a few weeks. I used the Cardas for a year before I got the Elxo and Zen and enjoyed it, but I still haven't gotten around to comparing it directly to the Elco or Zen. It's a headache, but one day I'll get around to it.
Hey llanger...I do think a lot of the claims are pure crap and cables are insanely overpriced, but they do make a difference. Should they?? I don't know. Do they become over priced tone controls?? Yeah. Still...many affect the signal in different ways, like it or not (and I don't). I made a CD with four identical mixes of one of our bands songs, each time using a different digital cable between the digital mixing board and CD recorder. I gave the CD to a band member who had no idea about cables or hi-end audio, but he did think that they were four slightly different mixes. I know electricity should be electricity and there should be no difference, but there seems to be some difference. Not $1000's worth, but some. Most audio manufacturers and designers prefer certain capacitors and other parts due to their specific sounds, so it doesn't end with cables.
I'm with Phild in that I have found digital cables, for whatever reason, to make a fairly significant difference in what I hear and I am no cable lover either. I'd much rather spend my $$$ on speakers, amps, etc. but the chain is only as strong as the weakest link, and at some point cables become significant--how much you want to spend on them is your call.
I tried toslink and found it to be soft and rolled off relative to coax, so I'd support the coax option for what it's worth. I'd also second Phild's recommendation of the Apogee Wyde Eye cable, which I've compared with much more expensive cables and found that it holds its own quite well and might be a nice first choice until you've found the higher-priced digital cable of your dreams. Best of luck.