USB-S/PDIF Converter or USB DAC?


I've decided it's time to use a music server with my main system. I currently use one (iBook) with my headphone system with the Grace m902 headphone amp with built-in USB DAC. I intend to get a new Intel iBook when they are released (March/April).

I currently have an unused Wavelength Audio S/PDIF DAC that I could use with a USB-S/PDIF converter (such as Empirical or Red Wine Audio) or get a USB DAC (WA Brick, Stello, ???). Is a dedicated USB DAC preferred over the hack USB-S/PDIF converter route?
budrew
Belkin stated that the release of the wireless USB hub will be in Sept. The chip maker backed out of the deal.
I did A/B comparisons for a long time with my WA Brick and Gordon is right. Going longer than one 5 m USB cable degrades the sound. I could hear a clear difference when trying three and even two USB cables.
Hmm... I'm intrigued by the wireless USB hub. I don't think I'd worry about UWB as a RF technology--its a very, very low level signal; we are talking about impulses here. Anyway, I have a hard time believing your are going to get interference problems with your hardware.

B'sides, the upside is huge--if the Belkin lit is to be believed, its freeking fast. USB 2.0 is 3mbps, and they say its 100x faster. Plenty of bandwidth to do very interesting things, including 24/96.

With reference to some other prior comments, and I may be wrong here, I don't think pops and clicks are a USB issues. When my DAC loses sync, it takes at least a second to re-sync. Anything resolving as a pop or click strikes me as being a source problem, power problem or the like, not a USB falling off the BER cliff problem.

I've used USB repeater cables and that sounded one helluva lot better to my ear than going toslink for long distances... Granted, it was a crappy toslink cable, but the difference in audiophile speak was "not subtle."