Tweaking My Setup

Currently running the following PC Audio setup:

Windows XP/iTunes (Apple Lossless)/Monster Cable Coaxial/Cambridge Audio DacMagic/Generic RCA-RCA Cable/Nait 5i-2 integrated amp.

(1) Preferrable to use coaxial or optical input w/ the DacMagic, rather than the USB?
(2) Any sonic advantage between coaxial and optical?
(3) If I continue to use coaxial or optical, should I disable Kmixer? If so, I could use some clear instructions.

Thanks in advance.
1 yes
2 yes
3 check out the computer audiophile dot com... and or use a differrent media player.

Good luck
Thanks for the responses and suggestions.

I'm not so sure about number one. It seems that USB is all the rage these days, so I would suggest reading up on that a little more or, better yet, it's a cheap experiment to try both and see which works best.
In a recent follow article in Stereophile magazine, a series of test results on the DacMagic were published. The author concludes that there was significantly more jitter w/ the USB input- he recommends using either the optical or coaxial inputs.