You just nailed it and it looks like is the right way to used miniDSP technology...have had no idea about it ,but found that TOSLINK connection to miniDSP sound the best.The miniDSP will immediately change the analogue signal into a digital signal again, so with TOSLINK you prevent an unnecessary conversion from digital to analogue to digital.
Count me in as well 🙂 .Siegfried and I both concluded that the A/D converter was the weak link. Feeding the MiniDSP input with digital definitely sounded better.