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DSKKeep in mind that if you're using the volume control in the Squeezebox, it's one that is implemented in the digital domain. With the SB connected to a preamp, the volume of the SB should be set to max to ensure no bits are being lost.
In the little box to the right marked Technical Fact, he defined "Impedance Matching" yet he is not doing this at all. In most systems the output impedance of the source is very low (0 to 1K ohms) and the input impedance that it is driving is quite high (50 to 500K ohms). Those are far from equal.