Great thread, and I appreciate ranjeetrain's clear and straightforward explain-the-basics "tutorial" approach. I'm one of those creatures who uses his PC for "everything," since it's the operating engine for virtually all of my home office activities (writing, Web surfing [not least to learn from threads like this one], etc.). The pertinent system components are listed below. The only "tweak" is the bypassing of the PC's internal sound card via the USB feed to the TEAC-501 DAC purchased a couple of weeks ago.
This is a "secondary" system (the main system, which incorporates vinyl as well as digital, resides in a much larger, separate room), and, notwithstanding its less-than-ideal acoustics environment, has become a de facto test bed for determining whether, how, and to what extent I'll employ computer digital in the main system. The last two weeks of listening to primarily DSD downloads has already answered the "whether" in the affirmative.
I've not found CPU usage, latency, etc., to be overriding issues in this setup. There are no detectable playback hiccups. What is an issue is the generation of spurious noise artifacts requiring careful (I'm tempted to say "fastidious") cable placement and dress of the USB and power cables.
I realize that this post doesn't contribute to the knowledge base per se, but thought it might be useful as an example of a computer digital system used by someone who's just "jumping in."
Home Office: HP Win 7 PC (i5 CPU @ 2.67GHz, 6 Gb RAM), JRiver Media Center 19/TEAC's own "HR Audio Player" software, Wireworld Starlight 7 USB cable to TEAC UD-501 DAC, Counterpoint SA-2000 line stage, c-j Sonographe SA-250 amp, Kimber Silver Streak IC's, standmounted Paradigm SE-1 speakers.