Almarg, I meant to respond before- I do use coaxial to connect with both my pc and cd transport. My octave v1 has no usb input. In your opinion, even if the impedance matching is not a problem, would a better usb/spdif converter go a long way toward solving the perceived lack of dynamics? I've only ever used this one, and I know a lot of people consider them to be one of the most important components, paying a huge amount of money for their own.I can't really say, Xrayz, as I have no particular familiarity with the sonics of the V-Link. I can only say that I would definitely consider replacing it if its output impedance is in fact 50 ohms.
Good luck as you proceed. Regards,
-- Al