what is the rest of your setup like? 

as a rule, either format ought to result in bit-perfect PCM out of the
Touch. so just curious about what components and setup are around it.

the config you talk about, is it standard or you modified it? i let
everything go in native format to the Touch.



...pablo
Server: Virtual Machine running Ubuntu 12.04 + LMS 7.7.3 on VMware
Player
System: SB Touch --optical->- Benchmark DAC2HGC --AnalysisPlus Oval
Copper XLR->- Creek Destiny Power Amp --AnalysisPlus Black Mesh Oval->-
KEF LS50
Other Rooms: 2x SB Boom; 1x SB Radio; 1x SB Classic-> MusicalFidelity
M1PWR -> Totem DreamCatcher
Computer audio: workstation --USB->- audioengine D1 -> Grado PS500e
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