Thanks for the reply and sorry for not being clear. 

My current setup is:
1. Airport Express Digital out > Transporter Digital in (No room
correction at the moment, Inguz cannot work)
2. LMS > Inguz > Transporter > Amp (using transporter as a pre with room
correction)

Proposed setup:
1. Airport Express Digital out (Toslink) > Transporter > Transporter
Digital out (AES, no other choice as AE is already using toslink) > DEQ
Digital in (AES) > DEQ Digital out (AES) > Transporter Digital in (AES)
> Amp
2. LMS > Transporter > DEQ > Transporter > Amp

Inguz is removed, DEQ doing room correction for both LMS and AE
streams.

My primary source is LMS, I occasionally use AE. The main idea is to use
TP as a preamp with room correction. I don't want to buy DEQ if the
above cannot work. I like TP's dac directly connected to amp.


cliveb wrote: 
> So your current connection is: Airport Express digital out > Transporter
> digital in.
> 
> (Side issue: I don't see how you're using Inguz in this setup. Is there
> some kind of plugin that allows the Airport Express to appear as a
> Squeezebox player to LMS, and therefore allow Inguz to do its stuff?)
> 
> Anyhow, of course you can add a DEQ2496 to this: Airport Express digital
> out > DEQ2496 > Transporter digital in.
> 
> Note that the term "digital loop" usually refers to using the
> Transporter as the source and DAC, passing the signal via an external
> effects unit (eg: Transporter digital out > DEQ > Transporter digital
> in). If you're using an Airport Express as the source, this isn't using
> the Transporter's digital loop - it's simply using the Transporter as a
> DAC.


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