Digital vs. Analog Volume Control

Hope someone can help. And, if this has been discussed elsewhere, please do me a favor and point me in the right direction.

Basically, I'm trying to figure out if there is a general rule of thumb to this, whether one way is always better than the other (all things being equal).

I have a Meridian 565 processor that can output either a fixed or variable PCM signal. I've heard that I should stay away from variable digital outputs or risk damaging my speakers.

Anyhow, if I go with a fixed PCM output to an external DAC, I would then use an analog passive volume controller (e.g. MSB MVC-1) between the DAC and Amp. However, if I use a variable PCM output to the DAC, I wouldn't need an analog volume controller between the DAC and Amp.

Thought? Opinions?
Do a search on Wadia or DCS. Lot's of digital vs analog volume control discussions related to those products.

Hope that helps
My understanding is that, in general, the analog volume control is better. But, if you are not using a great preamp, going directly from the DAC to the amp, may override this difference.
I think I must agree with you Drrdiamond, it's what I've heard as well. But do you, or anyone, know how the digital volume control of the Meridian stacks up against the analog volume control of the MSB?

I guess it all boils down to whether the volume control should be before the DAC or after?

Setting aside my setup for a moment, let's assume the answer is inevitably always 'after' (analog) given comparable quality components, does anyone know of a good multichannel volume control other than MSB's MVC-1 (8-channels)?