Innous Zenith Mk3 and the PS Audio Directstream Mk2

Looks like the Zenith might not support DSD Native with the DirectStream. See https://innuos.com/kb/known-compatible-native-dsd-dacs/

In general, DSD Native is somewhat of a crapshoot. Might want to try DoP mode - it packages up the DSD in a PCM container which is just as good as 'native' and seems to enjoy wider compatibility. I can't find any info on how to enable it on the Innuos website and don't own a Zenith.

As Sean told you today, while Innuos can play DSD files in native format, it is highly dependent on the DAC. See the link @yage gave you above.

I guess you already know that, but in Innuos Settings, go to Audio under System, then select one of the three options. If you get no sound under the last two options, DSD over PCM (DoP), or under Native DSD, it means your DAC is not compatible with Innuos to play DSD files, and will convert them to FLAC (first option, No DSD support must be checked). Sorry. You will still be able to play DSD files, but converted to FLAC.

@thyname 

I was able to get a DSD readout and sound using the DSD over PCM choice on the Zenith,  But I encountered a problem that the the PS Audio started the tracks within the same DSD file slightly late.  I used the audio delay feature on the Zenith and that produced hiss with the music,  I had to restart the PS Audio to remove the hiss but the issue of the track not quite starting at the beginning remains.

Sometimes the DAC needs to take some time to detect the format and switch from PCM output to DSD. It probably won't happen for subsequent tracks if playing an album.

You might want to contact PS Audio about what to do to minimize the latency.