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I can't really give you a comparison between 16 and 24 in the car (though I have a Silverstone in my car and a logitech 24 bit system in the house) but I CAN tell you that MP3s lower than 192Kbps sound like crap on my Silverstone. (Using WinAmp and its EQ)
I don't see that changing with a higher bit DAC because you're still working with low quality... Garbage in, garbage out is how I see it.
Just my .02
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