Oh i see, I am still debating with my self if I would use the jbl's with the micro. I've been using headphones for over a year now but I would like to see how will the micro play with speakers too...
Others have posted on their practical experiences, for example here:
http://www.head-fi.org/t/728236/ifi-idsd-micro-dsd512-pcm768-dac-and-headphone-amp-impressions-reviews-and-comments/4845#post_12100613
You can use the search function to find more.
The difference between "direct" mode and "preamp" mode is precisely what it says.
That is, in direct mode the signal on the RCA's comes directly from the DAC's analogue stage, like it would if you had dedicated DAC with line-outs.
In preamp mode the signal on the RCA's additionally adds a volume control and a buffer/preamplifier section, like you would have if you combined a traditional line output DAC with an external preamplifier.
You can see the signal flow on the block diagram for the iDSD micro (black & silver) here:
The preamp in the iDSD micro uses a very high quality J-Fet input integrated amplifier circuit (OV2627 made for iFi) designed to drive 600 ohm loads with very low distortion (< 0.00005% THD & N with a 600 ohm Load).
What's added is a very good sounding pot in front of this amplifier. This is designed and made for iFi by factory founded by people that worked for Noble (still considered the best high end potentiomenter by many) when Noble closed down. It was selected for it's superior sound quality over similar items from other sources.
Arguably the same linestage is shared with the headphone section, it drives the headphone buffer which is needed to provide extra current for the headphones and if preamp mode is selected, it also drives the RCA iutputs.
You can find dedicated "line stage" preamplifiers and "line controllers" costing serious amounts using the same circuitry and often not even as high grade op-amp's.
For example, a German made $13,800 line preamplifier uses exactly the same kind of circuit, but with amplifier IC's that have more than 10 times the distortion compared to the one in the iDSD micro.
We simply didn't skimp. You really do get a high end linestage integrated in the iDSD micro and you save the money and sonic impact of one RCA interconnect cable.
In order to maximize performance it is best to set the gain on the active monitors to the lowest possible and use the gain trim (if present) to set elevated normal listening levels to happen when the iDSD micro is in normal mode and the volume control is around 12 o'clock.
For a more "scientific" approach you can use a 440Hz/-20dB FS tone, set iDSD micro volume control to 3 o'clock and set the SPL at the listening position using a SPL meter to 82dB for one speaker using the trim on the monitor.
The result will then approximate studio condition and THX recommendations for playback.