Hi Jim-
Wow, you work quickly. Thank you for sharing your process here, it is very interesting. I know that you have stated that your dac will upsample, and I think it would be interesting to compare the upsampled to the non upsampled output.
I have had some difficulties understanding the real benefits of upsampling, and in my own limited experience with upsampling, I question it's transparency and benefits. I have an admittedly low end player, a Phillips 963, which offers upsampling to 24/192 from 44.1/16. The upsampling is switchable on the fly, which is great for comparison. I've found that there is some difficult to describe quality that is lost when the upsampling is turned on, the easiest way to put it is that the timing is off with the music. The notes don't seem to fall in the correct place, as if the attack has been smeared in some way. The timbre changes slightly as well, in a way that I don't think is better. There is more air in the sound, but I'm not convinced that the air in the sound isn't a euphonic distortion that actually cuts down on the clarity of the presentation. It also could be making the best of a poor situation, a solution to the problems that 44.1/16 has had from it's beginning.
I know that all the major digital players are upsampling now, and that it is the defacto standard for digital reprodution. At the stereophile show over the weekend, most of the players upsampled, often without mentioning that fact. So, upsampling is so common place now that it is probably being used even if it isn't mentioned. Upsampling interferes with the simpler is better axiom, although I suppose that digital reproduction in and of itself interferes with that axiom.
I'm wondering if you would be willing to listen to the dac with upsampling and without upsampling before you made a final decision on the design. It is possible that the upsampling improves the sound, but it is also possible that it changes the sound, and better or worse is a subjective concern. I realize that upsampling plays a role in the filter as well as jitter reduction, so it might be so built into the design that it can't be switched off, but I think that listening to it without might yield a surprising result, and if it sounds better with upsampling, then all the better.
Thank you for taking the time to share your progress with us.
-Aaron.