In my CD player, I have three options for output:

1) Traditional Analog (left and right channels)
2) Digital Optical
3) Digital Co-axial

My pre-amplifier supports all three inputs. Will using the digital output give me a better sound quality than analog outputs? And of the two digital options which one is better - optical or co-axial?

Since the output from pre-amp to power amp is analog and from power amp to loudspeakers is also analog would using digital output from the CD player to pre-amp really make a difference?