I'm not worried. The seller is The Music Room based in Erie, CO. My suspicion is they did not do adequate testing on the unit when they received it. One of their techs replied that each unit undergoes a series of thorough tests and the unit definitely works. What I can say is that if I (1) connect CD player directly to my receiver and (2) connect the same CD player to the DAC and the DAC to same receiver on a different input, #1 plays perfectly fine while #2 plays at an extremely low volume. The CD is send the same output to both the receiver and the DAC. Both outputs are verified as working. So clearly the unit was not checked. I initiated a return yesterday which TMR has yet to approve. I will give them 2 more days then will dispute the charge with both my credit card and PayPal. I can see cheaper DP1s on EBay and elsewhere.
I have decided to go another route. Have you ever heard of Audio Science Review? I just came across the site. It debunks many hifi myths and is run by engineers. They test a lot of gear and recommend many. They don't do Stereophile-type reviews. They depend on the scientific testings to determine what is good. Then you have to listen and read subjective reviews to determine if you would like to purchase. Amazing. So I have decided to sort their recommendations by price and see what type of a DAC can I get for $1k. Their reference DAC is the $380 iFi Micro iDAC2! How can a sub $2k DAC be called "reference" in any sense of the word?!? I have much to learn, Grasshopper.
FYI, I don't know what part of Brooklyn you are in, but I was in Red Hook, Carroll Gardens, and Cobble Hill this weekend. I had an amazing meal at Buttermilk Channel. Brooklyn has some serious artists ... and warehouses for that matter. Lol
Thanks again for all your help. I have a complete system finally except a working DAC. I am looking to make a decision today, but unfortunately I have a certain threshold of reading I must do to make an informed decision. Will let you know the final decision.