I agree with iPhone completely. Our brain is pretty good at noticing
differences between 2 different sounds, but it isn't very good at
judging the quality of a sound without a reference for comparison. My
system has more of a warm tonality to it. When I inserted the Mark
Levinson DAC into the chain it lost a lot of the warmth, and I
immediately noticed the difference. However, after playing it for a
while it began to sound "normal". 

Flac files, or any lossless files, will produce the same digital
bitstream as the original CD assuming no errors have been made in
decompressing the file. This is generally a good assumption considering
that you can unzip program files for the PC without a single bit being
in error. If an error does occur in the digital bitstream it will
usually produce a dropout or skip in the sound output. It won't change
the tonality. Think of a dirty or scratched CD. So as long as the
signal is digital, and as long as nothing is broken, the sound quality
shouldn't be degraded. The problems arise at the D/A chip and the
analog stages that follow it. Converting the digital signal to analog
is a tricky process. If the digital bitstream isn't clocked through the
D/A at precise intervals (jitter), the noise level will increase which
will reduce the dynamic range. Also, the quality (e.g. linearity) of
the D/A chip and the filtering used will have a major effect on the
sound quality, including the detail, distortion and noise.


-- 
duke43j
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