For the moment my source is a MacBook Pro connected to a PS Audio Perfectwave DAC via optical.
This is soon about to change and will be a Lacie NAS connected via Ethernet to the DAC as the network card for it will be coming out in a few weeks enabling high resolution files to be played. I rip in ALAC or AIFF.
From the dac I have balanced Audioquest Diamondback cables going to the Luxman P-1u to drive the HD650 with Silver Dragon cable. Pretty happy with this setup and my cans of choice for rock, alternative, reggae etc...
The Silver Dragon really is a must for me on the HD650 as it tames the bass and removes the veil.
The PS3 just acts as a transport as the DAC bypasses its internal decoding via optical. As far as I can see the PS3 itself can rip CDs at 320kpbs MP3 which is pretty much good enough, and it should be able to play WAV files. As for lossless I don't think it can play FLAC but I might be wrong. To my ears this setup is certainly better sounding than my laptop via USB. Of course the PS3 can also just act as a CD player too.
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