Wyred 4 Sound DAC1 or DAC2?

I'm using a Classe Cap151 integrated amp - using the dac alone with a squeezebox and iTunes. Aerial 7 b's, Wireworld digital interconnect, Zu Libtec speaker cables. Squeezebox is using cardas balanced interconnect. I need to update my system and pictures!

Mihaitaa: If you have the money go for the Dac 2, if only because if you don't you'll wish you had. If you find your system sounds better with the MF preamp you could probably sell the Dac 2 for a very little loss and replace with a Dac 1. I have a Dac 1 and am perfectly happy with it since I'm not going to do usb with it and I run into a Rega Elicit integrated which I won't be changing anytime soon. In my main system I have a PS Audio PWD which I'll be using with the Bridge to do HighRes. That also has a preamp and I "may" try that direct at some point. FYI I also replaced a Cullen PS Audio DLIII with the W4S, you won't be disappointed.

I thought that was you :-) Not to be ahh sexist but most can't tell that the gear has changed, all looks the same to them.. Silence is golden. oh may want to check this out:

http://www.6moons.com/audioreviews/wyred4/dac.html

Now, that my W4S DAC-2 has arrived two days ago and has been playing continuously since, I'll try to help someone else probably having the same dilemma as me.
I won't be able to make a sound comparison between DAc-1 and DAC-2, for I never had them both, but I can compare them from the feature difference perspective and how they worked for me.
1. Asynchronous USB. It works superbly with the W4S drivers. I'm using Foobar with Kernel streaming. My previous PS Audio DLIII with Cullen IV mods never sounded as good via USB as via SPDIF coax. USB was always grainy. That forced me to keep my docking station (that's how I was getting SPDIF out) and to employ a decent digital interconnect. Now I am connecting the DAC-2 via its included USB cable and the sound was never better in my system.
2. Volume control. This is a killer feature. I always liked my Musical Fidelity A3CR preamp. I don't have the least bad thing to say about it. But I felt weird every time I thought about it and saw just an attenuator on steroids. This is because I have only one source, my computer, playing lossless flac 16/44.1 or hi-res files. The volume control in DAC-2 is the cleanest possible and working in the digital domain is superb. The Sabre DAC chip works internally in 32 bits, thus all samples, be them 16 or 24 bit in depth need to be upscaled prior to D/A conversion. The digital attenuation DAC-2 applies is in fact less upscaling. It is a lot of room, (48 dB for 24 bit streams and 96 dB for 16 bit streams), before any resolution is lost due to this process. According to Robert Harley, 20 bit audio is state-of-the-art and the last 4 bits in 24 bit processing are "marketing bits". This makes for, in fact, 72 dB of attenuation margin inside DAC-2 even for hi-res streams before any resolution loss occurs.
This is the theoretical support for what my experience with DAC-2 attests. The volume control of the DAC-2 works excellently even when paired with a 31KOhm input impedance power amp. In stark contrast with the bad experience I had when trying to feed the Benchmark directly into my power amp, DAC-2 delivers. DAC-2 directly into my MF A3CR power amp sounds significantly better than the PS Audio through MF A3CR preamp.
On top of this, the nice features possible when operating in the digital domain let me configure the volume control such as the max voltage outputted by the DAC-2 is 1V. This is exactly what my power amp needs to go full bore. Thus I'm not worried that I could ever overload it.

Thus, to sum up. The $499 difference between DAC-1 and DAC-2 allowed me to eliminate a coax digital interconnect, a docking station, a preamplifier, a PS Audio xStream Prelude SC power cord and a pair of Audioquest Columbia with 72V DBS interconnects. All this while giving me the best sound I've ever had in my system.

I know that DAC-2 has an improved power supply when compared to DAC-1. This should, at least in theory, result in better sound. Of course, I cannot say anything in this regard, for I never listened to DAC-1. But, for me at least, even if DAC-1 and DCA-2 sound the same, the 2 features mentioned above made the DAC-2 the better choice.

Of course, this is only my opinion.