Hello all. The Touch's DAC is far better than people think IMO. It sounded rubbish for the 1st 50-100 hrs then suddenly transformed into something rather good, with excellent depth and width of stage, stunning imaging, and well into the £1000+ cd player league. I wonder if anyone has bothered to run in the analogue section sufficiently? I'm amazed. And relieved, cos i don't need a a new DAC as I at first thought.
Furthermore John Swenson has confirmed that the output caps were a design fault, and can be bypassed by simply soldering across the terminals, giving a significant jump in performance. He also says that physically disabling the screen will take the the Touch's analogue out up hugely. I am wireless, so ethernetting it would help. The software mods can also help, as v]can a linear power supply (some say this is subtle). I would hazard a guess that a run-in, modded analogue section shows that the internal DAC is as John describes it, very very good indeed! (He uses high end external DACs too!).
I am playing it in £5000 of valve pre power into Lowther DX2 horns, and in my other system through a superb Sugden A21 (selling on ebay now boohoo) into electrostatics, so my systems are very very good.
Also, I run the touch wirelessly without a computer with an attached usb-powered external hard drive. I have no problems and it runs really fast, and is a joy to skip btween songs (all my hard drive tracks are WAV files).
The radio sound quality at 320kb is extremely good also. Not really up to my Sansui TU717 on fm, which is one of the best tuners ever made (I've owned 30 of the top tuners) but truly amazing, with room for improvement with hardware and software mods!
All in all