The diagram is more than adequate for the purpose. It's more than I expected. Thanks!
I know nothing about the Alien DAC, and only skimmed the 2702 datasheet, but from what I can see, shorting output to ground shouldn't hurt anything. I don't see any warnings in the datasheet about doing that.
I also don't see any mention of output short circuit current protection.
However, I do see that it says you have to ensure the load impedance is > 5 kΩ, but I expect that just means it's allowed to go out-of-spec below that point. It also implies that the output DACs inside the chip aren't capable of pushing a lot of current, which actually argues in favor of them being effectively short-circuit protected, because it means they can't put out enough current to burn transistors or melt bond wires.
Could be wrong, but I'd look elsewhere for the problem.
Do you have a way to test the DAC in isolation? Maybe play a test tone through it and measure it with an AC voltmeter? Or better, a scope?
Edited by tangent - 3/14/12 at 10:25pm