I'd like to get something straight on the subject of digital volume controls. You very often hear people say (ar least on internet audio fora) that attenuating a digital signal is bad because of a loss of resolution. This is justified on the grounds that when the volume is reduced some bits are filled in with zeros, and the smaller number of non-zero bits that remain can't store as high a resolution version of the signal as the original.
Now, strictly speaking all of that is correct. But since you obviously need a volume control of some kind, the real issue is to compare digital attenuation to more conventional analogue volume controls (say a potentiometer). And as far as I can see, there is no real difference. You can forget everything about resolution - a digital volume control acts almost identically to an analogue one, at least in so far as signal degradation goes.
Let me explain. Suppose you start with a 16 bit digital signal, which is 96dB of range, and suppose the noise floor of the dac is at -90dB. What that means is the last bit of those 16 bits is irrelevant, because changing it from 1 to 0 makes a difference at the -96dB level, below the noise floor. But now think about digital attenuation for a second. When you attenuate the signal, two things can reduce the resolution:
1) the signal to noise gets worse, because the signal is reduced but the noise stays the same, and
2) rounding errors and finite resolution effects from the reduced numbers of bits make the signal less accurate
But here's the thing - in my example above 2) is a total non-issue, because the attenuated signal is AT MOST off in the last bit - and that's below the noise floor. And those numbers were not realistic - most digital devices I know of (the Logitech Squeezebox for example) actually do the volume control with 24 bits, which means the errors are -144dB down from the signal - and that's far below the noise floor of even SOTA devices.
Conclusion? Digital volume control is no better or worse than analogue, all else being equal, and the stuff about "loss of resolution" is nonsense (unless you just mean decreased S/N, which will happen with analogue controls in just the same way).
Am I missing something?