I noticed this as well. I only run my Airmotiv4's at about half gain because otherwise, when adjusting the D1, the volume goes from nothing to loud as hell with a very tiny move of the knob.
With the Airmotiv4's volume lowered, it works out well. The only time its still an issue is when I'm using earbuds (yes, I need some real headphones) late at night... I just don't have much room for volume adjustment - it's either none or moderate.
One other quirk - if I have the D1 turned off, and I try to start some form of audio (Winamp, WMP, embedded vid in Firefox)... I get no sound just by turning the D1 on. I have to turn it on, then close and restart the audio source to get volume. Maybe it's a driver issue... Either way, I didn't have this issue with the Nuforce uDAC/uDAC2.