I haven't played anything via USB, just hard-wired gigabit ethernet with
music residing on an HP MSS (495EX),

I have two music libraries: ~1100 CD's ripped to Apple Lossless via
iTunes
About 9 24/96 albums in a separate FLAC folder on the MSS. 

SBS is installed on the MSS.

Touch is connected to a Beresford Caiman DAC via co-ax digital audio
out. Better quality RCA interconnects from Monoprice (not high end by
any means), but not the cheapos. 

Cambridge Azur 640A v2 integrated amp
Royd Minstrel speakers (oldies but goodies)
Rotel 5 disk CD player

ALAC 16/44 rips to me sound as good as the CD head to head. Since the
CD player isn't spinning, if you want to pull hairs, the Touch sourcing
ALAC has a quieter base. I couldn't detect any material difference in
sound between the two. 

24/96 FLAC is something else. The improved dynamic range, immediacy,
fluid highs are quite spectacular. I have played jazz (Al Dimoela, and
the Chesky Demo CD v2) and was flabbergasted at the purity of the
sound. Live albums like the Kinks "One More from the Road" and Peter
Framptons "Frampton Comes Alive" are certainly as good as I have ever
heard them, however the comparison isn't at all fair due to 30 years
and really mid/low-level 1970's electronics. I couldn't compare these
to CD as I don't own hard copies of the albums, just the purchased FLAC
downloads. 

Obviously, my system leaves a lot to be desired for the hard core audio
hound, but my goal is eventually to throw in a Bryston B100SST
integrated amp, possibly the outboard Bryston BDA1 DAC and  swap the
speakers for B&W 804's. That should do me as my hearing fades with old
age. But I can't really see needing my CD player any more. Maybe
replace it with a good SACD unit, IF they keep making the disks, which
is dicey at the moment. 

Does that opinion help? Overall the Touch is a nice piece of kit,
except I can't get playlists or album art to work from the MSS.


-- 
dufferdan
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