Question about Toslink and a couple DACs

[panther]

I have a question about using Toslink. I currently have a set of Vanatoo Transparent 0 connected through the Toslink optical in on the speakers to my computer running a Creative Labs AE-5 through it's Optical Out port. I always just assumed it was using the DAC built into the soundcard, but reading a bit online now I am wondering if all along it has been using the DAC built into the Vanatoo speakers. I need to find my analog cable at some point to listen to the difference, but have I been wrongly assuming what I am actually listening to for a while?
A second question is will I really benefit going to an external DAC like a Marantz HD-DAC1 or Cambridge DAC Magic Plus over using the creative sound card. I would like to get a 6.3mm dedicated headphone jack is my main reason considering them.
Thanks.

 

[twsecrest]

DAC (Digital to Analog Converter)
S/PDIF (optical or coaxial) is a digital signal, a pre-DAC signal.
So you are using the Vanatoo built in DAC function.
To use the AE-5's DAC, you would run a cable from the AE-5's front speaker jack, to the line-input (Analog) on the Vanaloo.
I would suggest to keep using the AE-5's DAC, I'm sure it's a fairly good DAC.
You can get an adapter cable, 3.5mm (1/8") male to 6.35mm female, plug the 3,5mm into the AE-5's headphone jack.

 

[Blumlein 88]

You are listening to the DAC built into the Vanatoo speakers. Toslink only carries digital information.

The Vanatoo uses DSP based crossovers. So if you switch to an external DAC and feed analog to the Vanatoo it will undergo an extra analog to digital conversion. I'd stay with Toslink for feeding the Vanatoo speakers. The DAC in the Vanatoo likely sets a limit on quality so just feed it digital with as few conversions as possible.

You can get an external DAC/headphone amp, and feed it via USB basically making phones and speakers separate. However, your AE5 soundcard should be of pretty good quality. Does it play your headphones well enough to suit you? If so, I'd just get a nice adapter that lets the larger headphone jack fit the smaller one. If you don't find the AE5 headphone unit strong enough, I'd probably look at getting a JDS Atom. Then feed the 3.5 mm output of the AE5 into the JDS Atom which will give you plenty of power for any reasonable headphone and the large jack you wish to have.

So to recap, stick with Toslink to the speakers, and if you want more than the AE5 headphone amp, get a JDS Atom. Fairly simple and good performance for the money.

 

[panther]

Thank you both for your replies and clearing up my question on the optical connection. I hadn't really read or thought about it until I sold my AE-5 and got a AE-9 which is having some messy driver issues (which I experienced crashing my computer non stop) I had to revert to my onboard realtek card and I didn't notice any sound difference which led me here.
I had ordered another AE-5 to just go back to what I know, but I kinda feel I have a chance to go another route this time so I had been considering just sending it back when it arrives and going with an external DAC. I don't think I have the space for a large DAC on my desk, I have about 15CM width to work with in space. I sorta thought about one of the Topping D50 or D30 after being on this site, but I might also considering keeping it all JDS if I was to get an Atom.
Also thanks for bringing the Atom to my attention.
Lastly my intention is to move on from the Sennheiser "gaming" headphones and go to a set of 660s or 650 perhaps. Mostly I just listen to iTunes AAC or Apple Lossless format with some MP3 going back, as well as the games I play (mainly strategy games while listening to iTunes in the background).
Thanks again for the advice and clarification