I have to do a more thorough testing, but I did not find a whole lot of improvement in the SQ when I used the N3 as a USB DAC with my Windows Laptop. The SQ is not much better than the SQ on my HTC phone that doesn't have the good DAC. Maybe, it needs a burn-in period as others have suggested. The music files that I tested are not lossless but are either 320 or 256 kbps mp3s. I haven't tested the SQ of the player itself. I am waiting for my new micro SD card which I will be receiving today.
However, there were no problems downloading the drivers and connecting it to my laptop.
However, there were no problems downloading the drivers and connecting it to my laptop.