Kirkus, thanks for the explanation. According to the designer of my DAC, the outputs are fully balanced (truly electrically balanced) in that as leg 2 goes up in voltage, leg 3 goes down by the exact same amount. So it sounds like it is differential.
Now, my VAC Auricle Musicblocs have balanced inputs. If I recall correctly according to one of the engineers at VAC this is accomplished via the "Williamson Method" (which I think is a name used in one of their older amp designs) and I believe uses an input transformer.
Perhaps you or Ralph can comment on this. From the sounds of it this does not appear to be a differentially balanced design.