On: Is it better to turn up the volume in the software...

[senthilnayagam]

I tried increase volume via VLC and macbook pro speakers got fried, will stick with using external speakers and changing volumes on them

[larskinn → senthilnayagam]

That's because VLC lets you adjust the volume above 100%. Generally not a good idea. If you avoid that, you should be fine.

Also worth noting, if you attenuate the signal (in software) from the computer you generally won't attenuate the noise, meaning that at the same perceived loudness from your speakers the sound will include a lot more noise. On my 2007 MacBook Pro this is very audible.