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Mark,The M-Audio Transit and derivatives aren't dacs - they do just what you said, take the usb out and convert it to spdif to feed the digital in of the Panny or any other dac...Jim
If you guys are looking for a decent sounding, super affordable USB DAC, here is another one to consider.Don't let its $109 price tag fool you for a minute. Coupled with a decent power supply (read=not the stock PS), this thing sounds pretty darned good. I've had mine going since Christmas in my office system (modified JoLida 102b, Odyssey Epiphany's) and it performs extremely well....far better than its hundred dollar price tag reflects. DAC707 Super Pro USBHey Ichinichi, give me a call before you go on a buying spree