Would be interested about to hear about this combo as well. Anyone?
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I have heard the wadia thru the cambridge azur 840c and it sounded pretty darn good.The files were apple lossless amp was rogue cronus(tube) and speakers were paradigm studio monitor 100. I may be mistaken but I think the dac in the 840c is the same as the dac magic, I'm sure I'll be corrected if that's wrong!! Anyway, if you can, listen to the combo yourself because what sounds good to some might sound like crap to you.
OK, you wanted opinions on the pair up of 170i and DacMagic. I have both in my system, so I can give my 2cents. First of all, I use Analysis Plus Digital Oval in between the two and Solo Crystal Oval out to my McIntosh MA6500. I think the cabling has made a dramatic improvement in sound quality and musical enjoyment, so I have to mention them. I'm extremely pleased with this combo, and my wife and friends are also impressed by the sound. I personally am amazed that the ipod is capable of this kind of good sound. I'm also enjoying the improvement the Little Pinkie power supply has made. I use Little Pinkie as a power supply for the DacMagic and a Musical Fidelity X-CAN v2. I think it is a worthwile upgrade for sure, if you can find one at a good price seems like a new one is around $350. Overall, We are very happy with the sound of this setup and the upgrade bug has not been biting lately.