This is fairly simple to conceptualize - if you are connecting your PC
to your receiver using sn S/PDIF cable, you are sending a digital
signal to the receiver and it must provide the digital to analog
conversion.
If you connect your soundcard using gppd ol' RCA cables, your
soundcard is doing the digital to analog conversion and passing an
analog signal to your receiver.
As to which one sounds better? That is up to you to decide. Play
some very well-known music and then switch back and forth to determine
what appeals to you. Have fun!!
-RW-
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