If you are running XP you don't need either.
It gets pulled over the IDE bus. But there shouldnt be a significant difference with an Operating System that uses the cable.
Yeah.. havn't connected them in any computer lately. Just make sure the digital audio extraction is enabled.
Control panel --> Sounds and Audio Devices --> Hardware Tab --> Select your Drive --> Properties --> Make sure Digital CD Audio is selected for each drive you have.
I think that is usually enabled anyhoo.. I never had to select it.