The DAC offers two settings to maximize compatiblity with transports. I was tantalized by the idea of a DAC, but compatiblity issues scared me away. Don't forget the A308 CD player which upsamples and is highly-regarded. It's $3000, but by the time you buy a DAC and go thru transports.... Musical Fidelity will probably come out with an integrated, solid state version of their Tri-vista DAC21 with the new chip, (or crystal--i can't remember which), that offers more dynamic range. It wasn't available to put into their Tri-vista flagship Amp and CD/SACD player.