I am trying to figure out the best way or setting connecting my HTPC (Foobar) to an external DAC (w/ ASRC upsampling). Currently, the DAC is connected to onboard S/PDIF via toslink cable. Under Windows 7's audio control panel, the output can be set from 16bit / 44.1hz to 24bit / 192hz. My music collection contains audio file in various format ranging from 16/44.1 to 24/192 but mostly in 16/44.1. Now should I have set the audio output in Windows to the maximum allowed 24/192 or 16/44.1?
Also, will I benefit from a dedicate sound card such as Xonar STX instead of onboard S/PDIF. Both will be connected to an external DAC via Toslink cable. Does HTPC process the audio signal at all when external DAC is used? For some reason, I felt the SQ from DX100 DAP->DAC->Amp->headphonesHTPC->DAC->Amp->headphones is not as good as Dx100 DAP->DAC->Amp->headphones for some reason.