Cheers for the interesting replies... its funny, I find that our "musical memory" is pretty poor in general and that the power of suggestion can easily influence subjective opinion. I believe the placebo effect in hi-fi is real.
Its my opinion that there is no other credible way of comparing two hi-fi components than in a proper blind ABX test. All other components should be kept the same (I concede the attenuator which I used does not meet this criteria but I am confident it does not colour the sound) and the levels must be matched.
I'm a noise and vibration engineer, so I believe in objective measurements as well, if you can't measure a difference, there is no difference. I believe high end cables are one of the biggest lies in the industry, others agree, see "the ten biggest lies in audio" in this article: http://www.theaudiocritic.com/back_issues/The_Audio_Critic_26_r.pdf
Also, note the "listening test lie".
The other side, is that even if you measure a difference, if that difference is outside of what humans can perceive, why waste your money? To test that perception we come back to the ABX test.
I know others will disagree. But I wanted to let others who were investigating "upgrading" their SB know that on my system, a friend and I could not distinguish any audible difference between these two DACs. The concept of which was "better" was never considered, just the simple question, can you hear any difference. I'm simply providing these people with another opinion to consider before they... waste their money :).
I still believe that if you want significant improvements in sound you should spend your money on the speakers/headphones.
Oh and as to the SB being flat... yeah, it has a nice flat frequency response, see:
http://www.stereophile.com/content/logitech-squeezebox-touch-network-music-player-measurements
Edited by Doubles - 10/31/11 at 7:06pm