to be honest, i don't use the equalizer! 90% of my iTunes library ae lossless files. I use Audirvana for improve the sound quality (plays from the RAM instead of accessing the harddrive)
The DACMagic is connected to the Beolab5's - MacMini USB out -> DACMagic -> SPDIF to Beolab 5 (this is the digital route - the analogue one is described in my previous post)
For the digital route, the DACMagis acts ONLY as a Bridge. Digital IN (USB) to Digital out (SPDIF)
From differnt reviews, this is an alternative Bridge solution http://www.halidedesign.com/bridge/