Hi - DSD playback is excellent, as long as the files you're playing don't have any low-level noise during playback. This affects most of my DSD files that have sections with low or no sound, like classical music and soft acoustic music. The worst so far is Amber Rubarth's Sessions from the 17th Ward SACD, which is unplayable on this dac. That said, if DSD is not a factor for you, or if you're happy to convert DSD to PCM (most software does this on the fly), then the R2R-11 is just about the best amp/dac combo I've heard under $1000.
The D77 is a fully balanced Sabre dac that costs 3x the price of the R2R-11. It will give you a totally different sound profile. I haven't heard it myself but Sabre days generally don't have any issues with DSD playback. Even the Audio-Gd NFB-11 (same price as R2R-11) will give you perfect noise-free DSD playback. It's only the R2R-11, as far as I know. that has the DSD issue, which is why I no longer play native DSD with it.