Vvrinc - I spend a LOT of time on the forums educating audiophiles about one of the most pervasive problems with digital audio, and that is Jitter.
Digital audio is comprised of two elements, the data words and the timing of these data words. The two cannot be separated because the D/A conversion of the digital datastream must have both elements. The data must be delivered to the D/A without error and the timing must be recovered or generated so that timing variations are minimized (jitter). This attempts to matche the timing of the original A/D that was performed in the studio with a low-jitter clock. These clocks are critically important for both A/D and D/A.
Here are some white papers I wrote for PFonline that tell more about this:
http://www.positive-feedback.com/Issue22/nugent.htm
http://www.positive-feedback.com/Issue14/spdif.htm
Steve N.
Empirical Audio