Thanks for the replies. During my first listening sessions, I prefer #2 to #1. Extremely different presentations of the music. With the HiFace, strengths include detail and accurate soundstaging. But, I find it a bit thin, grainy, harsh in the treble, bass shy, and less emotionally involving than the optical out.
Currently using a stock Belden Optical Cable. Will be auditioning a Wireworld glass minilink to Toslink glass optical in the near future.