You can connect directly to the 68-pin connector on the 4350. No signal conditioning (attenuation/etc.) is required. This will degrade your signals however if the cable is not shielded well (twisted pair). In addition, you will not have the CJC compensation built into the TBX68T (on channel 0) nor the auto-zeroing circuitry on channel 1 (also built-in).
The Digital I/O can be connected directly. Do ensure that your relays don't exceed the DIO specs on page A-8 of the user manual at www.ni.com/manuals.
The maximum cable length for the USB 1.1 spec is 5m. NI sells a 2m cable. These specs assume that your environment is within CE specifications. If you are working in a noisy environment, I recommend using a well-shielded cable (USB 2.0) and providing additional
shielding if a USB solution is necessary. Working with an internal (PCI) solution would reduce your susceptibility to noise and is recommended. You can use a repeater to extend the cable but be aware that this will increase your susceptibility to noise.
http://digital.ni.com/public.nsf/websearch/0D4951EAEE72CC0586256B8B0052C6ED?OpenDocument
Hope this helps,
-Adam