Tao is not necessarily a supreme being. It is the source of all, and the whole of all. It is not a god with human characteristics, just a oneness to the universe. The spirits are simply life, evergy, or to a taoist, Chi. But my experience with spirits also leads to a more pagan and shamanistic view of the spirit world. Its very complicated. Pretty much, anything with life possesses a spirit (chi) and anything without life reflects the spirit of those closest to it. The tao is what creates, destroys, and causes everything, and the spirits are a direct creation from it. Its more complicated than that. But if you wish to know more, you can pm me and I can help clarify.