Check out computeraudiophile.com > DAC forum. There was at least one thread with big words for that upgrade.
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I had my DAC 2 upgraded to the DSD option (not SE) as soon as it was available last spring for the same reason queried.
I had previously compared USB input into the DAC 2 from a Windows 7 laptop to S/PIDF input from a Marantz SA8003. I found the sound with input from the Marantz to be a bit cleaner sounding. This was done using identical music ripped to the laptop. It was apparent that the USB converter wasn't as good as it could be and I had considered add on converters, but wanted to stay with the one box DAC, power supply etc.
After the upgrade the sound using the USB improved significantly and I think it now sounds better (smoother but no loss of detail) than using the Marantz as a transport. And comparing using ripped hybrid SACDs, the ripped 44.1 files played back through USB to the DAC 2 seem comparable to SACDs played through the SA8003.
I'm happy with the upgrade.
Thank you very much, Mksker. I didn't jump as soon as I saw the upgrade available, and now the upgrade is $500 plus shipping. I know that $500 isn't much in the "crazy world of audiophile prices" ;-) but I was thinking that I could direct that sum elsewhere, with better results.
Your answer will weigh significantly in my decision, that's for certain.