New X spidif 3 have i2s noise isolation so this version can actually kill usb noise unlike previous versions.
No I am using a Chinese made LPSU I bought through Ebay. I took it apart and checked the joints etc. It is well made with a 30W torroidal transformer and led volt readout. It can output 6-9v. I am still using 6v output fo the SPDIF 2. The "3" version released recently requires a 12v external input (for when using a weak output such as a mobile phone) but I do not think that I will benefit form the USB earthing improvements for the IIS LVDS port (I use the XLR AES) so will not be "upgrading".
You mean that the I2S sounds better right?
Correct, there is clearly an improvement in the I2S on X-SPDIF 3 when compared to the previous version, that I still own. I came to that conclusion by comparing I2S to AES XLR on version 3, knowing that on version 2 there wasn't much difference between the two outputs. The new DDC I2S port seem definitely cleaner, with darker background and improved dynamics than XLR. Is AES better on the new version, too? Hard to say as I haven't done the comparison. That's why I said above that if you don't use I2S an upgrade might not worth it. Moreover, the quality of your DAC input has a major role to play. No point using I2S or upgrade to version 3 if you prefer the AES or coaxial inputs of your DAC. Denafrips seem to love I2S, hence I would benefit from any improvements in that area.
Years ago with my first two SPDIF converters, I discovered that input to the DAC via coax cable simply sounded better. I had a quality optical cable that I used for a time, but when I switched to coax, I never went back. When I finally paid the $$ for the best coax cable I could find (Oyaide R-510 silver, strongly recommended at the time), the improvement in sound over my nice-sounding Billy Jeans coax was noticeable, so I stayed with the R-510 thereafter on my main system. When the Matrix DDC came in ago, it made a noticeable sonic improvement, too.
