Garth,
As Steve mentions, the general rule of thumb is to avoid digital volume controls as they normally just shave off the top output peaks rather than lower all signals (low and high volume proportionally like a volume control should). Some, again as Steve mentions, are more sophisicated. The light based volume controls are supposed to sound really good, but have a life expectancy.
Many volume controls in integrated amps and most in DACs are passive (which means there is no associated gain/boost circuit that can lack dynamics). Note that the upgraded Eastern Electric DAC did away with it's passive volume control. So to answer your question, most recommend an active pre-amp.