To close the loop, I purchased the TeddyDac and it's nothing short of exceptional. I'm using it with Leben CS300XS integrated amp and Devore Super8 speakers. Source is an Apple MacBook running BitPerfect software connected to the DAC via a Van Den Hul Optocoupler MKII optical cable.
I much prefer the sound of the optical cable over USB in my setup (I have a decent Kimber USB cable that I tested with), plus I get 24/192 using optical from my MacBook -- though 99% of my music is 16/48 anyway.
Compared to my previous setup (Peachtree Nova with integrated DAC, which was very decent), the music is so much more engaging and relaxed. Granted, I changed my integrated amp and DAC at the same time, so don't really know how to parcel out the accolades, but I really forget that I'm listing to digital with the new setup. This is a different league entirely.
-John