I'm no expert on DACs, but I just got a DAC1 USB about a month ago, and have been very impressed by it. My one suggestion is that if you're thinking of using it also as a headphone amp -- I would recommend against it, at least if you're planning to use K701s. The DAC1's amp just doesn't match well at all with these cans, however if you feed the output into a really good amp that synergizes well with the K701s - like the HeadAmp GS-1 that I use -- I'll guarantee that you will be literally blown away by the sound. The only other DAC/amp combination that I've had any experience with is the 2006 HeadRoom Desktop with Max amp and DAC modules, and all I can say is that this is smoked by the DAC1/GS-1 combo that I have. Unfortunately I couldn't comment on the sound of the HR DAC alone. The USB option is a great thing, although I'm presently not using that option right now (but may move to computer based source in the future). There were some other upgrades in the DAC1 USB that appealed to me and eventually convinced me to buy this model rather than the stardard DAC1. There's a huge thread on this unit that I found extremely helpful, which you really need to check out.