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Normally the Denon mixer will have a RCA SP/DIF output, and the 1/8" input of Creative cards is SP/DIF too. Although I know that earlier SB Live had not the standard SP/DIF, I'm pretty sure they fixed it.
Now in regards of what connection to use, normally SgtFoo would be right, except...
There is an analog to digital conversion going on at the inputs (usually your TT's and CD's still connect in an analog way).
Would you use the analog XLR's, it would be a balanced analog signal yes, but there would be a digital to analog conversion going on. Pluging that analog signal into your soundcard... There is an analog to digital conversion going on there too (as the sound is digitized in the soundcard). And finally one extra digital to analog conversion again on playback.
If the X1500 is made in an intelligent way (certainly it will, it would be pretty stupid to do an unnecessary conversion step for the digital outputs), it will be better to keep it digital. That way, there is only the conversion at the mixer input taking place, all the internal processing in the mixer is digital, the signal stays digital at the output and doesn't get converted unnecessarily. That's two unnecessary steps -that would degrade your signal- less.
Quality signal is not necessarily about using balanced or not, it's more a matter of taking the shortest possible way to get where you want to go. Any extra component or length is a possible degradation in your signal... (That's why some top mastering engineers prefer unbalanced stuff, less electrical components. In a controlled environment, unbalanced isn't worse than balanced).
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