Hi scott. The new belcanto 3.5 vbs is better in about every way I can think of, I am going to upgrade my dac 3vbs to .5 status. It has more bass weight, and punch. it has a larger, soundstage , with better separation of instruments but with better focus of each individual instrument within the soundstage. it is paradoxically richer harmonically but with better detail and resolution. music sounds cleaner and clearer , and sounds just hang in the air with great decay. It just seems like there is less between you and the performance. I have heard and been around lots of highly regarded dacs and cd players , while I thought the original dac 3 was very good for the money, enough that I bought one, the dac3.5 vbs combo I would put up against anything at any price, its really that good. you will have to spend far more to get better digital sound. you have to hear one for yourself, happy listening, Chris