Originally Posted by thathertz
IMHO you will get a significant increase in fidelity when using
320kbps MP3's but the Dacmagic really starts to shine when you
use lossless media.
This is a good and bad point with the DACMagic. I've had mine now for a couple of months and it has hundreds of hours on the clock. Although I could hear differences between lossless and 320 kbps before, the DACMAgic makes the differences extremely obvious to me - the 320 kpbs files sounding more like improved versions of low bitrate MP3 rather than slightly worse versions of lossless.
I've bought a few 320 kbps MP3 files from the Deutsche Grammaphon website and there is a pretty clear difference between those and the CDs or the FLAC downloads they offer.
The DACMagic is the reason, however, why I am not buying anything compressed any more (but I only bought compressed before because it was not available in lossless). If the DACMagic can reveal the differences so easily, then when I upgrade in the future to something serious, the differences will no doubt be even more marked.
This is not to say MP3 sounds bad via the DACMagic - it still sounds good, but lossless really does shine with it, whereas with other equipment you often wonder what the point was of using a lossless source.