Hi declancd7q,
I havent heared any modified DAC1's. My enthusiasm for mods has declined over the last year. I feel that mods change rather than improve the performance of a component. If you like the changes, you see it as an improvement and vice versa. IMHO you would be better off going for a different sounding component in the first place instead of spending large amounts on trying to change the sound of what you weren't fully satisfied with in the first place.
I am not a great believer in the effectiveness of small scale mods such as changing a couple of capacitors or diodes. Surely it wouldn't cost a fortune for manufacturers to implement these if they were that dramatically effective.
Regarding the sound of the DAC1 (stock), I initially thought the midrange sounded thin (compared to an Arcam CD player). The highs were amazing and I didn't find the bass lacking, eventhough it wasn't accentuated like in some other players. Within 3-4 days, my ears adapted to the new sound, and I felt that the midrange was very detailed and seperation was fantastic, but it wasn't accentuated like my Arcam. The midrange is quite recording dependant, being full in good recordings and a tad thin on poor recordings. Contrary to what appears on some forums, I did not find changing the transport or cables made any difference, but I never tried really cheap ones like portables and £25 DVD players.
If you like a very warm and forward midrange at the expense of other frequencies you are better off looking for a more suitable DAC or CD player rather than paying large amounts of money on modifications. If you like your sound phenomenally accurate to the source whether good or bad, the stock DAC1 fits the bill perfectly. Good recordings played through the DAC1 will make your hairs stand on end!
PS: I am not trying to slight large scale mods and their proponents. They just dont make sense to me at their cost, when we are spoilt for choice of Hi Fi components. Secondly, your warranty (5 years for the DAC1) is invalidated, and you end up losing everything, should something go horribly wrong. I know some modifiers provide a warranty, but I dont think it will be remotely as comprehensive as that offered by the manufacturer.
Cheers
Nirmal