Funny stuff playing around with hardware and software, trying to get it all to jive.
I have a USB spdif converter. When I use iTunes, the Mac outputs to the USB device. When I use Softsqueeze, it defaults to the internal speakers, and no playing with settings will resolve it!
I already have iTunes on another pc, so I cannot seem to get iTunes to work optimally on the Mac, and I am struggling to get it to recognize my entire collection on the external hd. Softsqueeze recognizes it all.
Moving to try a 3rd freeware player on the Mac. One that can output via the USB device, can see my entire collection, and one that I can use some software to remote control it via my iTouch.
VLC perhaps? Play? Audnirvana if there was a free one?