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I have serious doubts as to whether this would outperform a well-designed upsampling DAC. Upsampling allows you to move the filter roll-off and the phase-shift well above the audio range so it's a non-issue. It allows you to get away with low-order filters. I don't experience any lack of dynamics - just the opposite.
Upsampler... I doubt it for the following reasons:Although we could probably sell a lot of them.. I haven't heard one that makes an across-the-board sonic improvement. The ones that do, usually have something else going on... jitter reduction, interpolation and higher bit rates (word lengths). The CS8420 is an easy way to do it but introduces alot of trade-offs. There is also rumor of the 8420 being discontinued and maybe the whole Crystal semi division of Cirrus Logic.
To give a comparison on upsampling DAC's, I have heard the Meitner/philips combo extensively. The P-3A upsampling DAC with my mods sounds every bit as good or better. They both upsample however. Most folks that audition either one usually comment on how much it sounds like vinyl, but with increased dynamics.
I may also look into get a better transport for the comparison, as the DAC's may simply outclass my old stable platter Pioneer.
The cd-3 may not upsample, but like most cd players it does use oversampling.