If your DAC1 has an IEC detachable power cord, try putting a Shunyata Black Mamba power cord on it.
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I am not sure a cable will solve your problem, however you might consider this:
I recently purchased a wireworld Supernova III+ TOSLINK cable. It is a GLASS (not plastic) optical cable that you can get for $99 here at audiogon. Used to be that coaxial digital was considered better. However, this glass toslink is getting some pretty good reviews for being sweet. Search the recent archives.
Although there are many possibilities, the Monster digital could be the culprit. What is the rest of your system comprised of? Also any recommendations that we could offer would depend on the degree of brightness you want to alleviate.
A reasonably priced digital IC I feel is smooth, open and throws a massive soundstage is the Acoustic Zen MC2. An overall excellent cable. Also, the analog IC from your DAC could be a factor, and for that I would recommend looking into Cardas Golden Cross. A very warm and full bodied cable with decent imaging and detail.
Is the DAC1 you're referring to the Bel Canto DAC1? If so, it's hard for me to imagine that unit being the cause of the brightness as that model had a reputation for being quite smooth.
Something may be off with the DAC. I have owned the 1.0 and 1.1 versions and neither could be considered bright sounding (compared to anything else that I have heard, just the opposite).
I am also familar with your speakers and they are not the culprit either, IMO.
If you want even a softer sound then try using a TOS Link cable with the 525 (granted that you are currently using an RCA cable).
Try a Toslink.. I tried both on mine and ended up with
the Toslink. I dont ever remember it being overly bright
but the toslink does sound better on mine.
Also i recently upgraded PWR cord with a recomendation from Bel Canto and it made a huge difference i still cant believe It.
Also have 602's and I have heard nothing but warmth from them. They are VERY good. For reference, I have Kharma 3.2's now, had Evidence Temptations recently and Wilson Sophias. I never missed ANY of them after they were sold and the 602's went back in until the next ear candy went into the system.
I had Transparent Reference w. XL speaker cables on them. Agree on the above Cardas recommendations. Transparent really only gets magical until Reference level though next level down is quite good also.
I'd look at power cords and also believe it or not, put some Vibrapods at $6 a pop under your DAC and if you can your transport and prepare to be amazed. If you have a lot of cash to burn, check out the Symposium, and of course a good aftermarket PC will do wonders though many of them will make the brightness worse. GOOD LUCK
Maybe try a Neuance iso/absord shelf under the transport. Does wonders for tightening the upper harminic presentation so that the brightness isn't prominent because it's more coherent. Swimmier suspensions like air cushions or pds might make it worse due to smearing effects. Check out sidewall first reflections, toe-in, as well. If necessary get a Cardas or MIT. As a last resort lose the cheap DVD and get a nice cheap NAD C541i for $500 and get on with it.