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I e-mailed. No response yet, but I registered for their forum and here's a post I saw: "The audio from your computer is sent via the usb audio standard to our dac. It does have buffering and error correction. We then convert it to S/PDIF to avoid the internal dac that is in the usb chip. At this point, the signal is treated just like any other input to the dac. It goes through the same receiver, upsampler/reclocking, dac and output stage as all other inputs.The current generation of drivers/chips only support up to 48kHz sampling frequencies.""We are converting to spdif. The entire audio driver is built into the usb spec so whatever comes standard with this interface comes with our product ."Too bad. Maybe it is still a nice product. The above quote makes it sound like they think it is a FEATURE to convert to spdif. Disappointing, nevertheless.
The receiver in the DAC is used to convert all incoming signals to I2S which is the format that is used in the Upsampling chip as well as the DAC itself. The nice thing about the USB connection is that you aren't relying on your noisy computer to do the spdif conversion. Our usb chip does not use the computer power supply to power the chip, it has it's own regulator. It also has a clean clock to keep jitter in check.