Some Answers
Long time lurker, and my first post here... I have done research on this for my home system and have some documents saved on my compter, not sure where they came from exactly, i think from the USB DAC product description pages...
QUOTE::
Basically the DAC has a single digital USB input. USB unlike SPDIF is bidirectional and therefore has error correction and buffering on both sides. This happens automatically so the data on the disk is identical to what is going out all the time. Also since this interface is asynchronous the clocking problems associated with SPDIF go away. What happens is... On power up of the computer the 2 devices negotiate services. In this case the USB DAC tells the computer it can do 16 bit audio at 32K, 44.1K and 48K. Since the USB receiver only has to handle these 3 frequencies, the clocking to the separate DAC IC has almost no jitter. SPDIF actually has to be synched to the exact frequency of the transport (i.e. if the transport is working at say 44.0896K instead of 44.1K the dac has to sync to that frequency). Therefore the jitter problems of SPDIF almost go away using USB. So using USB we have a zero error protocol to link the computer to the DAC and very low jitter what else.....
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