A quick update here. I ordered and just received the I2S input mod kit from Kingwa. Basically, here is the kit with details (click image for higher res):
So, this little board allows for two
extra selectable I2S inputs in addition to preserving the original I2S line.
The beauty of this is that the digitally selectable input front panels on Ref 7 and similar DACs can be modded to incorporate the two extra inputs with the addition of a few resistors, I believe the boards are provisioned for up to 9 inputs or something like that if I remember correctly. So, once everything's modded, the front panel selector will scroll through 1~7 or how many ever new inputs you want to have added.
Anyway, I was told this little mod board is what Kingwa is using to incorporate USB inputs on the latest batch of TE8802-enabled Ref 7.1s...
...WHICH, by the way, is different from the way it was done before (and until Kingwa ran out of these boards)... Check these photos out from the old Ref 7 and 8 pages:
Ref 7 USB version (click to enlarge):
Ref 8 USB version (click to enlarge):
What is different, you say? Note where the wires are heading to under the DSP-1 board from the USB input board... And compare the middle section (around the DSP-1) with the non-USB versions...
Reference 7.1, non-USB version:
Do you see the differences?

When I asked Kingwa about the differences, here was his response:
[size=10.5pt]The image is a design compatibility PMD100 or DF1706.[/size]
[size=10.5pt]The image(1) is only can use the DSP1.[/size]
So, looks like there were two versions for the "digital mainboard", one with PMD100 or DF1706 capability and one solely for DSP-1. And, in the "official" USB versions of the past, the I2S lines of the PMD/DF section were being tapped directly from the USB board to provide for an additional I2S input without the need for a separate mod kit.
On a related but separate note... I sent in my old Ref 1 to be modded by Kingwa using the I2S input mod kit board so that in addition to the single SPDIF input, I can have two additional I2S inputs, one of which I have asked to be connected to an internal TE8802 board for 24/192 USB input and the other left as an RJ-45 I2S input connector for other external I2S devices. To facilitate input switching, Kingwa will install a 3-way toggle switch on the front panel for me as well.
Anyway, this is all very exciting for me - I look forward to receiving the modified Reference 1 back from Kingwa and doing some extensive comparison between quality DIR9001-based SPDIF input (fed by Audiophilleo) and various other I2S inputs including Audio-gd's TE8802 board. I will post my impressions here as soon as I can. Stay tuned...
