I have the original 218 (didn't even know the Palladium came out), use it every day for CD, DVD, iPod (through Wadia iTransport) and it is a superb DAC. Haven't heard the AA, but I have found nothing about the Dodson to be dissatisfied with, which is saying a lot for an obsessive audiophile. Just because the AA design may be newer does not mean it is better -- or not better.
Neal
Neal