With level matched double blind tests that have been conducted in the past, generally speaking, people do not hear any difference between different DACs.
Pyrrho, my sincere thanks for your reply and insight.
In this case, I will need to disagree. The difference in sound between the Denon with its internal DAC and using the V-DAC were immediately apparent. I should have been more clear with my post above - I heard the difference immediately and after critical listening, was better able to articulate the differences I heard.
If you want real improvements in sound, I recommend upgrading speakers.
The first system I owned over 35 years ago included a set of LWEs. If I recall, they were pretty horrible. I then stepped up into a set of AR-11s, which I had for a very long time. They were powered with a Marantz 240 amp (with the current limiting circuit disabled) and a Marantz 7C tube pre-amp. We used to stack a pair of the AR-11s on top of each other and power both sets with a pair of modified 240s, driven by the 7C. It was a hot system back in its day, and it would go stupid loud.
Then about 20 years ago, I got into Magnepans. I started off with a set of the 1.4s, which I really liked but the wife always complained about how large they were. By the time I switched to the Denon amp and CD player, I was quite pleased with the system. At the time we lived in a house that had a room that worked well with the Maggies, pulled about 3 feet from the wall without being in the way.
After the wires began delaminating from the diaphragms in 1.4s (after about 15 years), I sold them and picked up a set of Magnepan MMGs. They had the "Magenpan sound" but I thought were a little light in the bass. After a lot of research, I some how ended up with the SVS subwoofer. The SVS can move a house off its foundation and getting it to sound right with the Magnepans took some effort, but I was never really pleased with how they matched up. Big speakers and a big cylindrical sub didn't lend themselves to optimal sonic placement without causing a major clash with interior aesthetics (at least from my wife's POV).
We then moved out of state and the house we moved into - though it was larger - did not have an ideal room for my system. This was due mostly to WAF, so I ended up in the lower level (partially finished basement). Try as I may, I couldn't get the MMGs to sound right in that area.
So, I decided I wanted speakers with a smaller foot print that would not be as sensitive to placement as the Magnepans, especially since I had to move the Maggies out from the wall every time I wanted to enjoy some music. The Polk Tsi 400s fit nicely where they have to go (on the sides of a 46" flat screen, which sits on a small entertainment center) and I figured I would just make the best of them. No trips to audio stores to test drive - I just did some Internet research and ordered them "sound unheard." Once again, I was not thrilled with the system. But I never really took the time to set it up either.
Over the last 6 months, I've been spending time arranging the furniture trying to optimize the listening experience. I also tweaked the placement of the Tsi 400s and spent some time adjusting the SVS subwoofer to blend in seemlessly with the Polks. Finally, I got the system sounding mighty good - in fact, much better than I ever expected.
My listening habits have changed too - instead of popping sheetrock nails, I now listen to music at around 80db. With a clean signal in, the Polks sound just fine and the SVS takes care of everything under 50hz with incredible ease. Over all, the listening experience is really quite satisfying.
So now it's down to some minor tweaks - better speaker cables, some better interconnects and the V-DAC. While the improvements from cables/interconnects were less certain, the V-DAC made an unmistakeable difference.
The best improvement by far is that I was able to set the system up - including placement of the speakers - for optimum performance without doing battle on the WAF front. In fact, she now enjoys coming down to the man-cave to enjoy some tunes too. While I have no doubt that better speakers could make an improvment, based on 35 years of fiddling with this stuff and 33 years of marriage, I know when I have it as good as it's going to get. Luckily, that now appears to be
really good.