Ok,

The digital output can be used with an external DAC or to connect the
Squeezebox to a receiver with a digital input (so you would be using
the receiver's DAC).

I looked up the L10 preamp on Google.  The DA input is just a regular
input like the cd or other input, use it with any low level source (cd
player, DVD player, TV, tuner etc...).

I'll leave the cabling question to someone else to answer.

BTW.  Here is a link to your manual (rather useless though).

http://www.klipsch.com/media/products/owners-manuals/L10%20line%20preamp.pdf

Adam.


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