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I still can't really explain why, and it might very well be 100% placebo...but I still feel that the $45 Dayton glass toslink cable has made lossy audio totally acceptable?! it's like before there used to be distortion due to the lossy encoding and *on top* of it, there also was the jitter/harmonic distortion/"whatever you call it" of the cable that just made the music "lo-fi" sounding...and now I fully agree that ABX'ing 320kbits MP3/FLAC would be really really hard. MP3 used to sound edgy and amusical before...ah well, this set up is still going strong! if I'm not bored 3 weeks later, it's usually a good sign
I thought the more transparent your set up, the more MP3 would sound like ****...but I believe that it actually allows lower quality files to sound their best.
I think I have an explanation to why it's better. On my review of the cables I mentioned that the light output was a little brighter with the dayton cable than with the ebay glass cable, I forgot to mention that the surface area of the optical input of the dayton cable was considerably larger than of the ebay glass cable, and before that comparison I had compared the ebay glass cable to the to the ibasso toslink cable, the ibasso cable (which is plastic btw) also sounded better than the ebay glass cable and the ibasso cable also had a brighter light output and If I remember correctly it also had a bigger optical surface area. The ibasso cable and the dayton both have longer tips so they were also much closer to the LED than the ebay glass cable.
That led me to the conclusion that what really matters is how much light the cable can let pass. The surface area of the LED is like 4x bigger than the optical surface of the cable so the cable only covers like 1/4 of the led. So a cable with a bigger optical surface will let more light pass through which will give a better sound, and it also helps if the cables tip is as close as possible to the LED.
I actually found a way to test this. I have this little USB to optical converter Ive been using (link below) because it sounds better than the optical out from my mac. I decided to connect it directly to my dac without an optical cable
!!! This would allow the full light output from the LED in the onverter to be sent to the reciever. I used a 3ft usb cable to extend it and I rolled a little paper into a small cyinder which I painted black and I put that in between the converter and my dacs optical input, this helped keep it in place and I think it also helps keep some of the light from escaping so it goes more direct to the optical receiver. I also made sure the paper was short enough so that the dongle and the reciever were as close as possible.
This made a very noticeable difference in every way there was just much more to the sound especially more detail and it was also a little louder.
I then took it a bit further. I removed the case and I cut part of the plastic that extends from the optical out of the converter so this would get me even closer contact between the LED and the receiver, this improved the sound a little further in the same way but there was an especially good improvement in the extension of the notes from the instruments and the singer, like when the note from an instruments decays before going to the next note the you could more clearly hear that or with the singers voice the words extend longer.
I put pics below so you can see the light output from the source and how much actually gets passed through the cable, I also put a pic to show how I connected the converter to my DAC.
heres is the link
http://cgi.ebay.com/Xitel-MiniDisc-MD-Port-DG2-PC-Link-Optical-Audio-Cable-/220582822530?cmd=ViewItem&pt=LH_DefaultDomain_0&hash=item335bc2c282
Cheers
-Cris