@whipsaw - You can call it a hardware problem if you want, but IMO, it was (is) a rational approach to solving the problem of jitter reduction of source-clocked digital data.
@jaytor If it was not a hardware problem, then how would you explain why other manufacturers of higher-end DACs have not encountered such problems? Jitter reduction is essentially a "settled issue", even in much less expensive DACs.
My understanding, though I could be wrong, is that the issue was not reported by users of the Terminator DACs. If that was the case, and it was a software issue, then why would it not have been a simple matter to resolve?
Finally, as you have a technical background, does this Cisco explanation of FIFO overruns not apply here? And if not, can you explain why?
Overruns appear in the output of the show interface Serial 0 command when the serial receiver hardware is unable to hand received data to a hardware buffer because the input rate exceeds the receiver's ability to handle the data.
This occurs due to a limitation of the hardware. Overruns occur when the internal First In, First Out (FIFO) buffer of the chip is full, but is still tries to handle incoming traffic. The serial controller chip has limited internal FIFO.