DeVerm;342830 Wrote: 
> Timing should not be an issue anymore since they started encoding the
> timing into the digital signal... (correct me if I'm wrong there). 

The timing -is- an issue, in principle, because it's reproduced at the
DAC end using the incoming waveform itself as a clock.  That is, the
DAC clocks its output using the rising edges (or something) of the
incoming signal as the clock.  When those edges get smeared, as they do
from reflections in the optical cable, errors in the timing (otherwise
known as jitter) will be larger.

I've read that jitter from Toslink is much worse than jitter from
digital coax (I could dig up the source later when I have time), so if
jitter is the biggest problem you face, coax might be better.  If
ground loops or RFI are the biggest problems, toslink might be better. 
Most likely none of those things makes any audible difference, in which
case the whole debate is moot...


-- 
opaqueice
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