Parasound DAC-Help?

I just ventured into the exciting world of DAC's.Hooked up a parasound DAC1100 to my old Denon Cd player thru the coaxial input.Notice that the sound is a bit louder and much clearer is that how it should be?Is the digital input better than the coaxial,and what are those lights that say 32 hz ,44 hz and 48 hz.Only the 44 hz lights up on my set,does it change??How,there is no selection.To be honest it is a 2nd hand set and there is no manual.Any help appreciated.
You better use coaxial (RCA) connectors rather than digital one (toslink) due to Toslink makes a lots of jitter. Also you must have a digital coaxial cable (75 Ohms). You can not use the normal cable for digital transmission
As for the sound, a louder volume is probably due to higher output signals on the dac than the original cd player - no big deal. The fact that it sounds cleaner is good - that's what the upgrade is supposed to do. As for the various numbers on the front, those are just telling you what frequency the digital input is running at. It is selected automatically, and it probably always show 44.1kHz, which is the standard for consumer CD format. Studios or midi/computer digital might use some of the other frequencies. I concur with the previous followup as to using the RCA digital connection instead of the Toslink optical. The Toslink might be ok for MD or computer connections, but is not as high fidelity as a 75ohm rca connection. Try a few different cables if you can, we have found digital cables to make almost as much of a difference as the dac itself.