I was actually hoping there was something wrong with my unit because I have been very disappointed with the audio quality. When comparing the X1/iPod Classic combo with just the iPod Classic alone. I am not hearing any improvement at all. When matching the iPod Classic with a portable amp ( such as the $50 FiiO E11 ) the sound is in many ways superior to the $500 X1.
Are there any firmware updates for the X1 ?