The marantz isn't meant to be a dac/hp combo. It isn't meant to be considered a headphone amp at all. The headphone out is ok, and sounds good for what it is. But it's just there to give you something to listen to. It's by no means considered to be a long term solution. Just compared it to a 2200.00 bryston last night. The bryston is the best dac I've listened to, and really an amazing value for it's price. Before I got there, Brent was raving about it's performance and he was right. It's the most analog sound I've ever heard from digital. With that said the marantz wasn't outclassed either. I would say it was about 90% of the bryston. And it was kind of an unfair comparison. He was using a halide bridge usb converter from the pc into the bryston. For a direct comparison we used the same track played on an ipod through usb on the marantz. Sounstaging, tone and timbre was the same. They both sounded very analog. There was a touch of grain that you could hear with the marantz that wasn't there with the bryston. But I told Brent that this is typical using the ipod as a transport into the marantz. In my experiences, the ipod input, pc usb input, and cd spinner all sounded the same with the marantz. The sound is quiet a bit better from the digital inputs. So the fact it was an unfair comparison and the marantz sounded about 90% as good as the bryston when the marantz was only using an ipod as a transport is high praise indeed. Now do I think the marantz would have been just as good if we would have used halide bridge with it? Well no. The bryston still had a little more extension in the bass, with just a touch better control. But I think it would have came close to 95% of it. With a little research I found why they sounded similar. They both uses the same dac chip while the bryston does use two of them. One thing we both agree on, you would have to spend at least twice as much to get better performance than the marantz. And since it does come with a cd player, sacd player, digital input from idevices, 24/96 from pc, ability to play lossless from a usb flash drive and even a full portable hard drive, sounds excellent all for 1000.00 is quiet a feat indeed.