Squeezebox touch volume question?

I have a question to those who are using the Logitech squeezebox touch. Just got one today and hooked it up to my Home theater receiver using the digital coax output. The Touch will mainly be used for Pandora and the like. I notice that that the volume of the touch is active even though connected digitally. Is that normal? Is there a way to disable the internal volume so that only the receiver volume is active. If not, at what volume is it recommended to set the touch at, all the way up to get it out of the way or set half way up or so. Any info to get the most out of the Touch as far as sound quality goes, besides adding an external Dac.
Thanks