Kellen,

Just to expand on DaveWr's point:

TCP/IP has flow control and error correction
S/PDIF has no flow control and embeds a clock signal in the S/PDIF data
stream

With TCP/IP (or USB come to that) the DAC can control the rate of flow
of data from the server, and uses its own local and hopefully low jitter
clock to rebuild the analogue signal.

With S/PDIF the DAC is a slave to clock recovered from the input
datastream.  

Solutions for the S/PDIF problem all revolve around filtering the
derived clock in some way, and runing the DAC at an average clock rate,
rather than deriving every clock pulse separately from the input
stream.

If you are looking for DACs that can use TCP/IP and have good quality
local clocks, as DaveWr points out, the are called Squeezebox.  I have a
transporter, and I still regard it as one of the better DACs out there.

Andy


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