"I am intrigued by the USB topic. Steve, are you saying that USB will beat my current setup I described above? I would love to put it to the test, thoughts?"
Very likely. Having the master clock in the DAC is of course the best scenerio, with one caveat: The clock in the DAC MUST have very low jitter, be powered from an ultra-low noise regulator with good input rejection as well as good design of the clocking circuitry. This is a tall order for most DAC designers.
Therefore, I believe an external Off-Ramp 5 with S/PDIF Hynes upgrade would be better. Its something you can try for the price of shipping. Money-back guarantee.
Using USB effectively however depends on having the right playback sofware and ripper as well as the optimum platform:
http://www.empiricalaudio.com/computer-audio/
http://www.empiricalaudio.com/computer-audio/recommended-systems
Steve N.
Empirical Audio