"The equipment is pretty good--I'm a vinyl person, so my DAC is not the best. It's a Levinson 360S. The transport that I compare to is the Levinson 37. Actually--it's quite good for redbook."
I have to be skeptical here because I've modded a bit of Levinson gear over the years. Very dark-sounding and lacking in extension is the commong thread. The 37 I have modded and installed a Superclock4. This is really stellar with these mods, but not that great without. ALL of my Computer audio devices beat this transport, even with the mods.
"The difference I currently hear between the CD going into that DAC, and the wmv files going into the same DAC are pretty huge. The wmv files have a tremendous loss of dynamics, both micro and macro."
The first problem you have is wmv files. I would use AIFF or .wav only.
Second thing is your S/W player. If you are using a PC, then the only players are Foobar2000 or Jriver. Nothing else comes close IMO.
Third thing is insuring that you are bypassing KMIXER if you are operating on an XP platform. The best way to do this is to unmap the device in control panel-system-devices. I can give you instructions for this if you email me.
Finally, if you are using Vista, then it is critical that you have 24-bit data to get bit-perfect playback, not 16/44.1, but 24/44.1. Only certain devices can deliver this. You must also be sure that the volumes are set at maximum on any player you use and that the sample rate matches between the player, the file and the Vista settings.
There are a lot of pitfalls to getting good sound from a PC, but its certainly possible. No transports (even modded) match the computer audio interfaces that I use.
Steve N.
Empirical Audio