[DrNope]

When using USB input of the burson D160 it is severly distoring on higher signal levels if pausing music and then starting again. This can be fixed by changing input of the DAC with music playing thus to me this seems to be a case of missaligned clock somehow wich introduces loads of distortion, and when swapping around the burson re-align again,
Is this somehow related to settings or drivers that can be updated somehow, that will remove this small but slightly annoying issue?

 

[NA Blur]

There are a couple of things to try the first of which would be to install the ASIO USB driver:
 
http://www.asio4all.com/
 
That should help the clocking issue.
 
The next thing to try is to make sure the PC volume is at 90% and you use the volume knob on the D160 to control the listening levels.  This will help prevent clipping both on the input and output.