Crackling sound when using a DAC


I just hooked up a Museatex DAC to a NAD CDP as transport. The NAD has a digital interconnect from it to the Museatex digital IN. From the Museatex I'm using Harmonic Technology's Interconnects to a Simaudio intergrated. The after market power cord from the DAC is plugged into an Acoustic Research surge protector.

Whenever I turn on the CDP it crackles from my speakers. The same is done when I replace a CD from the NAD drawer and the player loads, could anybody explain this? Am I doing something wrong?
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Hey Oxia, I have my amp's volume set to 0 and it still happens. What i meant by switchin to Optic was, I only change the setting, there isn't really a wire hooked up there, but when I change to optic setting, allow the disc to load, then press play on the NAD, I switch back the DAC to wire setting, and no cracks or distortion.

It's very strange indeed.
Hmmm. So to summarize, these are the two scenarios:

A)
-The DAC is configured to use the coaxial digital input
-You then put in a CD
-The CD player reads the TOC and outputs a signal
-The DAC recognizes the signal; CLock engages
-You get a sharp "crackle" from your speaker

B)
-The DAC is configured to use the optical digital input
-You then put in a CD
-The CD player reads the TOC and outputs a signal (the DAC doesn't receive the signal because it's not hooked up via the Toslink connection)
-You switch the DAC to the coaxial input
-The DAC recognizes the signal; CLock engages
-You get no "crackle"

It sounds strange because I would think that since the ouput relay and servo are engaged when the DAC receives the signal, then if they are the cause of the problem (i.e. they are faulty) it shouldn't make a difference whether you use method "A" or "B". One possibility is that there is a brief initial "burst" discharge from the NAD's digital output when it sends a signal, which goes away after it has a second or two to settle. Perhaps this is upsetting the DAC's receiver, and by switching the DAC's input off and then on a bit later, you are effectively giving the transport's digital output enough time to settle before engaging the DAC. Have you tried using the DAC with another transport? Have you used different DACs with the NAD? Again, I would encourage you to email John Wright for his thoughts.

It was the NAD, I've since used another Transport and I didn't get the problem.

I have no idea why this happens with the NAD. I can avoid the problem by switching it to optical and then back to coax once it's loaded.

Im not sure I could buy a DAC that would beat the NAD handsdown for under $500 as a simple transport, so I might keep the NAD for awhile, I've seen a Theta and CAL audio Lab transports for sub $500 but I have no way of telling if they would be a sonic improvement to the NAD, so I might just live with it for awhile.
The NAD doesn't send a continuous digital signal all the time. As such, what you are hearing is the DAC locking and unlocking. This is what i described in my first response. This is a common problem with some specific CD and / or DVD players when used as transports. Before buying something else, you should contact the manufacturer to find out if the transport constantly sends a signal out of the coaxial jack or if it engages as needed. Sean
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Hey Sean, thx. Do you know of any used CDP's that I could buy and use as a dedicated Transport, which would have a digital signal sent out at all times? Ideally I'd like to sell my NAD 541i and use that money to buy an equally as good transport. Perhaps an older ROTEL, ARCAM, or something? The idea of a detachable power cord for future upgrades would be also nice.