How would you improve the sound of Squeezebox?


I just set up a NAS music server with Squeezebox Duet. The convenience of accessing all my music collection is really a great thing. Now the question is, how would you improve the sound of the Squeezebox digital output? I heard people say that SB's outputs digital signals with much jitter, so what DAC's(~$1000) would you use to reduce the jitter? i.e. what DAC's has the better ability to handle jitter? Any other ways that you can improve the SB's SQ?
amaggie05
Thanks for the input. I am tempted. If I do it, I'll probably never listen to my Esoteric.
I had been running the digital output from my Squeezebox through my Audio Aero Capitole digital input with great results.

I also have a Transporter in my system and I am now running both through my Anthem D2. Really good results.

The Squeezebox DAC is not a good as the Transporter and the Transporter DAC is a bit too analytic...not all that warm-sounding...so using either the Capitole's DAC or (even better) using the D2 DAC delivers what I want.

Having said that, I am really impressed with either Slim Device product and I highly reccommend either, budget permitting.
I also just sold my Apollo for a SB Duet. Running 50' hard line ethernet, stock Duet, digital out into a DAC with tube output stage I custom built. IMO the real limiter on the Apollo (and most CDPs) is implementation of the analog output stage, which is why I built my own DAC.

The SB Duet is an excellent digital source. Using its internal DAC, I would generally agree with Cerrot's comments above - good, but there is better. But at the price - its a steal.
I've been listening to my Squeezebox for the past week running through the Monarchy DIP upsampler into the DAC of my Opus 21 and I'm convinced the Monarchy is an improvement using the 24/48khz output setting. I tried 24/96 and didn't care for that setting - the music became thin and edgy. At 24/48 - compared to no DIP - the backgrounds seem quieter and music just seems fuller and "cleaner". I've swapped the DIP in and out of the chain several times for comparison and I comfortable the DIP is an improvement in my system. My listening is entirely with internet radio and Pandora. YMMV, of course.
Give her more chocolate and flowers and take her to
the movies more. Oh, yeah...take her out friday nights.