Here are some details about how this all works in JRiver Media Center:
1. If you want to send DSD as DSD (not converted to PCM) to your DAC, set bitstreaming to DSD. That will keep DSD as DSD and everything else will stay as PCM. The PCM files will use the DSP if you have it set. DSD files will bypass the DSP entirely.
2. This means that you can't apply any DSP at all to DSD files. No volume leveling, no eq, nothing. Because of this, you might want to convert DSD to PCM. Just turn bitstreaming off and it will automatically convert to PCM.
3. If you convert to PCM, JRMC will use 352.8kHz as the conversion rate. You'll want to change this to output whatever your DAC can handle. If your DAC can handle 352.8, you're all set. Otherwise, set it to convert 352.8 to 192, or 96, or whatever your DAC can process. I do this and DSD sounds great to me. DSP Studio > Output Format > Sample Rate
4. Some people will tell you that DSD converted to PCM actually sounds better than pure DSD on some DACs. Some DACs are good at DSD. Some are good at PCM. I have no opinion on this. Just sharing.
5. You *can* convert everything to DSD with JRMC, but it's not recommended and not necessary unless your DAC only plays DSD. That is called "Output Encoding". It's in DSP Studio > Output Format > Output Encoding.
6. 2xDSD and 4xDSD are different than regular DSD. If your DAC only handles PCM and 1xDSD, then you can't bitstream 2xDSD or 4xDSD. If you plan to play these formats, you have decisions to make, which might include converting *only* these formats to PCM.
This stuff is rather complex, but I've tried to lay it out logically.
Brian.