07-29-09: KopsI get the impression that the PS Audio DAC III is 24/192 in native mode. It upconverts lower sampling rates and shorter word lengths to 24/192. Therefore, I presume that if it receives a 24/192 digital bitstream, it will decode it in native mode as there's nothing to upsample.
upconversion is wrong way.....native is needed
BTW, the $299 Musical Fidelity V-DAC also runs internally at 24/192 and has a USB input.