I just bought a Really Nice Compressor. I want to use it with my Studio Projects VTB-1 mic preamp.

The RNC instructions say:
Hooking up the RNC to balanced lines with TRS 1/4" plugs will not work! If the equipment you are connecting the RNC to is balanced, you must first unbalance it and only connect into the RNC with TR 1/4" plugs.

I have three dumb questions about this:
(1) I don't really understand the difference between balanced and unbalanced equipment.
(2) Should I use the compressor as an insert effect on the VTB-1, or should I just put it between the VTB-1 and the recorder?
(3) Do i need special cables? If so, what kind?

Could someone who uses these two devices please tell me the best way to do it? Should I patch the RNC into the Insert jack of the VTB-1? If I do that, do I need a two-headed 1/4" cable or should I just use the input jack on the RNC (which says 'tip=in; ring=out')? Or should I go from the VTB-1's Line Out to the RNC's In jack to the RNC's Out jack and then into my recorder?

I'd be really grateful for very simple instructions. I'd also be grateful if you'd educate me about balanced vs unbalanced connections, and about anything else that I need education on.

Thanks much.