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Originally Posted by zdogg
One important word of warning: the unattenuated output of the XLR jacks(that is, with the switch in the back of the DAC1 set to "calibrated" rather than variable) is dangerously loud and certainly can potentially trash your ears and cans if one is not careful.
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LOL, I was kind of in the middle of some thing else and totally misinterpreted this. Lemme explain, I have my DAC1 connected to a dvd-player and without thinking it through I quickly snapped the switch to calibrated mode and OMG! my head almost exploded! Jesus Christ that was loud!

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Originally Posted by zdogg
I use the calibrated setting with Foobar in conjunction with Foobar's digital volume attenuation (usually set to -33 up to -20 DB depending on the tune); this seems to sound a little better than the variable setting using the DAC1's pot, but remember, if you're surfing the web while listening and some annoying ad pops up and starts playing music without the benefit of Foobar's attenuation, your ears will bleed and cans crackle  . I imagine this caution should be applied to any cans used in this fashion.
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yeap, thats the part I missed.. LOL!
Have you tried connecting the DAC1 to a cd-player or a dvd-player using the variable mode and compared that to a computer based source with the DAC1 set to calibrated?