Mini digital/analog audio output

I'm using my Mini for itunes music (AIFF) with my home entertainment system. It's pretty high end and I want my receiver to handle the DAC. Is the HDMI output from the Mini digital? Can I make the output digital?
Should I consider going out the USB to a DAC and then to receiver?
Thanks

Should be HDMI. It's got the highest bandwidth -- it can basically pipe 8 digital audio channels uncompressed -- and you can rely on the DAC in your receiver or pre-amp to do the work. If your setup is good, the DAC in your receiver / pre-amp should also be good.
Others may be able to speak to the USB > DAC question. I'm not an terribly well informed, but USB has got lower bandwidth than HDMI, and is not really tuned for A/V delivery. That said, I've read some good reviews of USB > S-PDIF / Analog Stereo DACs.
Finally, I think that S/PDIF is going to be pretty heavily compressed for anything above simple stereo, so if you're interested in high performance 5:1 or better, it's probably not ideal.

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