My integrated, a hegel h360 has an onboard dac but i'm new to streaming and currently run a usb from a laptop to the unit and with tidal's highest res option many songs sound very good but am I getting the most from both formats? 1 being tidal and the other being the onboard dac? a dealer recommends the blue sound into my analog outs which makes no sense to me?
Not to me either.
The USB interface on most DACs is a weakpoint IME. you have the issues with USB SQ mixed with an unknown USB implementation. I would avoid the analog outs and use your Hegel DAC.
The Bluesound would be a good choice if there were features in there that you like ie; player software, user interface and streaming accessibility. I would use the S/PDIF output from it and reclock it with a Synchro-Mesh to lower the jitter. I would use a very good S/PDIF cable, like this one:
http://www.audiocircle.com/index.php?topic=154425.0
If you want to improve your USB, then get a Berkeley USB converter and a good S/PDIF cable to your DAC. Get a good power supply to power the 5V in the USB cable, which powers the input side of the converter. This still requires a good player software and a good USB output port to sound decent. All USB ports are not the same.
I use Amarra for USB, but Jriver with Ethernet is better.
Steve N.
Empirical Audio