The 950 will work fine with the iRiver or other portable MP3 players, using either analog or digital connections. In all the cases I know of, the players' digital output is formatted as PCM just like CD's are. I'd probably use the optical in your case, but there's a sure-fire test: try both and use the one you like the most.
_________________________
gonk
HT Basics | HDMI FAQ | Pics | Remote Files | Art Show
Reviews: Index | 990 | speakers | BDP-93