How would you improve the sound of Squeezebox?


I just set up a NAS music server with Squeezebox Duet. The convenience of accessing all my music collection is really a great thing. Now the question is, how would you improve the sound of the Squeezebox digital output? I heard people say that SB's outputs digital signals with much jitter, so what DAC's(~$1000) would you use to reduce the jitter? i.e. what DAC's has the better ability to handle jitter? Any other ways that you can improve the SB's SQ?
amaggie05
I compared the Transporter with a stock PS Audio DL3 using stored files (PC) - the DL3 was run through the digital out on the Transporter. This was at the dealer on a system unfamiliar to me, but it was very clear that on every recording the DL3 outperformed the Transporter - the DL3 sounded more open and clearer throughout the frequency range. The Transporter retails for $2,000 the DL3 at $1,000. If you can wait, PS Audio is in the process of developing a new “Ultra” DAC, which will be considerably more expensive (probably due this fall). Personally, I chose not to wait, so I’m buying a Cullen-modded DL3.
Amaggie05,

The digital out to the benchmark sounds wonderful. Quiet, nice soundstage (wide and deep but not as wide and deep as my Esoteric X03-SE), nice detail and transparency; very musical and absolutely non-fatiguing; no digititis. You can hear the individual instruments and there is a bit of air around them. Bass and treble are very well extended and the low level detail is very, very good-none of the graininess I have read about. The upgraded CI power supply has a bit to do with it as well, I'm sure, but have not tried it without. The onboard dac sounded very thin, tiny soundstage and practiclly no depth. Almost no low lever detail and no where as much resolution as with the benchmark. Overall, just plain non-involving. It was better with the power supply (blackened the background and made it more musical, not as thin sounding, and added a bit low level detail). It is an incredibly good sounding source for me with the benchmark. I listen for hours. Without the benchmark, it sounded alot like my Bose Soundwave radio in the livingroom. With the benchmark, it sounds much better than the Meridian 588 I traded in a few years ago. I would strongly recommend anyone with a SB giving it a try.
Cerrot,
Please comment on the addition of the Channel Islands Power Supply. I would be interested to know the difference over the stock switcher.
Get a better power supply. The wall wart that came with mine creates all sorts of noise in the AC. Almost any transformer based supply would be quieter.
Adding the CI gave it a blacker background, improved soundstage and detail but what really did it was the benchmark (after the power supply upgrade). I use a shunyata diamond back with the power supply and also upgraded the umbilical, which all added to the power supply's increased performance. The tinny sound went away, but it was still thin, though not as thin as the wall wart. The Benchmark really makes it a satisfying source. I didn't want to add the benchmark w/o first doing the power supply upgrade. My thoughts were to get the SB as close to a transporter as I could, so I thought the power supply and dac would do it. I haven't heard the transporter but as I am now tremendously happy with the SB/PS/Dac combo. I am thinking of getting a 100ft ethernet cable to connect direct to computer (router) rather than wireless, as I have heard that will upgrade sound as well. Has anyone tried this with the Squeeze Box?